Clearing up a temporarily murky jurisdictional issue, a Southern District judge has ruled that Hong Kong corporations are now considered citizens of a foreign state � China � and can sue in federal courts.

In a case of first impression, Judge Shira A. Scheindlin deferred to the wishes of the U.S. State Department and the People’s Republic of China in rejecting a jurisdictional challenge by a clothing importer who was sued by a Hong Kong supplier in Favour Mind Limited v. Pacific Shores Inc. 98 civ. 7038.

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