• Reuters


Some Chinese state-owned entities backed by the key government agency that oversees major state industrial companies have adopted a controversial defense when they face U.S. lawsuits: You can not touch us because we enjoy sovereign immunity.

Aviation Industry Corp. of China (AVIC), China’s biggest state-owned aerospace and defense company, has used the strategy twice, while state-owned China National Building Materials Group Co. (CNBM), a state-owned building products company, successfully used it in a case involving allegations that Chinese-made drywall led to health problems for U.S. homeowners.

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