State-Owned Entity Transparency and Accountability Reform Act of 2016

This bill amends the federal judicial code to allow U.S. courts to hear cases against a foreign state's corporate affiliates under the exception to foreign sovereign immunity that subjects a foreign state's commercial activities to the jurisdiction of U.S. courts.

In determining whether a U.S. court has jurisdiction to hear a case based on the commercial activity of a foreign state, a commercial activity of an agency or instrumentality of a foreign state is attributable to any corporate affiliate of the agency or instrumentality that: (1) directly or indirectly owns a majority of shares of the agency or instrumentality, and (2) is also an agency or instrumentality of a foreign state.