In United States v. Pangang Group, --- F.4th ---, No. 19-10306 (9th Cir. 2021), the Court affirmed the district court’s denial of a motion by four Chinese companies to dismiss an indictment charging violations of the criminal provisions of the Economic Espionage Act.
The companies moved to dismiss the indictment against them, arguing they were “instrumentalities” of the government of China and were therefore entitled to sovereign immunity under the Foreign Sovereign Immunities Act (FSIA). The district court denied the motion to dismiss.
The Court allowed the interlocutory appeal from the denial of the motion to dismiss. But the Court concluded that in moving to dismiss the indictment, the companies failed to carry their burden to make a prima facie showing that they are instrumentalities of a foreign sovereign within the meaning of the FSIA.
