The doctrine of state immunity occupies a contentious space in China’s contemporary approach to international law. The People’s Republic of China (PRC) insists on the doctrine of absolute immunity: Chinese courts cannot exercise jurisdiction over a foreign state without its permission, nor can foreign courts exercise jurisdiction over the PRC without its consent. This position contrasts with the doctrine of restrictive immunity, which holds that domestic courts may hear a limited number of cases against foreign governments that engage in commercial activity or seize foreign-owned property. In maintaining the absolute position, China clings to the traditional view. However, recent overtures suggest that China may begin a shift, made by many other countries, towards the restrictive theory. Ultimately, this chapter is agnostic as to whether China should adopt the restrictive theory.