China’s National People’s Congress (NPC) passed the Anti-Foreign Sanctions Law on October 10 and released the full text of the law in the evening. According to scholars, the law will have the greatest impact on foreign companies, as organizations and individuals in China are explicitly prohibited from cooperating with U.S. sanctions or face deportation, asset freezing and other penalties.
The 29th meeting of the Standing Committee of the 13th National People’s Congress (NPC) concluded in Beijing on the 10th, and the Anti-Foreign Sanctions Law (hereinafter referred to as the “Anti-Sanctions Law”) was considered and passed, with President Xi Jinping signing a “Presidential Decree” to implement the law on the same day.
In the evening of the 10th, the authorities released the full text of the law, which stipulates that “relevant departments” of the State Council may punish organizations and individuals who “directly or indirectly” participate in the formulation and implementation of sanctions against China. The sanctions include denial of entry, deportation, freezing of assets, and prohibition of transactions with entities or individuals in China.
“The main highlight is that the coverage of the bill is very broad, and the fourth, fifth and sixth articles are the most important ones, and those who are directly or indirectly involved in the formulation and implementation of sanctions can be included in the counter-sanctions list, such as spouses, relatives, etc.” Henry Gao, a China trade and law expert at Singapore Management University (SMU), told the station that last year, China’s Ministry of Commerce (MOFCOM) introduced the Regulations on the List of Unreliable Entities, as well as this year’s Measures to Block the Improper Extraterritorial Application of Foreign Laws and Measures, both at the MOFCOM level only, with a They are less effective. The Countermeasures Law, on the other hand, brings the legal basis for China’s counter-sanctions actions higher up the hierarchy.
Our correspondent asked the U.S. Department of State and the American Chamber of Commerce for comment on the new Chinese law, but had not received a response by press time.
“China looks anxious.”
In recent months, the United States, Canada, the European Union and many other countries have imposed sanctions on Chinese and Hong Kong officials as well as entities in response to the persecution of Xinjiang Uighurs and other ethnic minorities and the imposition of national security laws by Beijing and the Hong Kong government to undermine democracy in Hong Kong.
Notably, all 14 vice chairmen of the Standing Committee of the National People’s Congress (NPC) have also been sanctioned by the United States for pushing the National Security Law and undermining democratic procedures in Hong Kong. These individuals, along with their immediate family members, were banned from entering the United States and had their assets frozen in the United States.
Scholars analyze this as an important backdrop to China’s desire to fast-track the Countermeasures Act.
Last November, Xi Jinping made a speech calling on the Communist Party to defend China’s sovereignty, dignity and core interests by legal means. In March, the National People’s Congress (NPC) said in its annual work report that it would upgrade China’s legal “toolbox” around “anti-sanctions, anti-interference, and counteracting long-arm jurisdiction.
Reuters reported that the Countermeasures Law was passed in April this year after a secret first reading, and two days after the NPC convened in June this year with news of the second reading.
China seems to be in a hurry,” Wunderkirk, president of the European Union Chamber of Commerce and president of Germany’s BASF Group in China, was quoted as saying. Such actions are not conducive to attracting foreign investment or to restoring confidence in companies that increasingly feel they will be sacrificed in the political game.”
However, Chinese Foreign Ministry spokesman Wang Wenbin said at a regular press conference on Oct. 10 that the passage of the Countermeasures Law shows China’s determination to safeguard its sovereignty and core interests, and will not affect relations with other countries.
“(The enactment of a special anti-foreign sanctions law) is to provide strong legal protection and support for China to counter discriminatory foreign measures in accordance with the law.” Wang Wenbin said.
Scholars:The main goal is to intimidate foreign companies
“I don’t think this (new law) will stop the U.S. government from imposing sanctions; I think the real target is foreign companies.” For his part, Gou Juren, a law professor at Hofstra University who specializes in international law, told the station, “This is a strong signal to foreign companies that if you comply with U.S. sanctions, the Chinese government may take action against you or prosecute you.”
Gou Julen cited the example of foreign manufacturers such as H&M banning the use of forced labor cotton in Xinjiang, “In the future, these manufacturers who join the boycott, or even just issue a joint statement (condemning forced labor), will face not only attacks on social media, but may also violate Chinese law.”
Gao Shuchao also mentioned that because the new law is extremely influential, Chinese officials may be conservative in its use, however, there is a certain intimidating effect on foreign companies.
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