China Enacts Counter-Foreign Sanctions Law: "Not the China of 100 Years Ago"

US and Allies Rush to Establish Retaliation Laws to Counter Defense Front
Includes Spouses and Immediate Family... Unlimited Retaliation Likely Possible

[Asia Economy Beijing=Special Correspondent Jo Young-shin] On the 10th (local time), China enacted the "Anti-Foreign Sanctions Law of the People's Republic of China," which can counter sanctions from the United States and other Western countries. As Western countries are scheduled to discuss measures against China at the Group of Seven (G7) and NATO summits, it appears that China hastily established a legal basis for retaliation. Since the fundamental principle of this law is "an eye for an eye, a tooth for a tooth," the US-China conflict is expected to intensify further.

According to the state-run Xinhua News Agency on the 11th, the Anti-Foreign Sanctions Law, passed by the Standing Committee of the National People's Congress (NPC) the previous day, consists of a total of 16 articles.

[Image source=Yonhap News]

◆ Virtually unlimited retaliation... including immediate family members = The core is Article 6, which contains the legal basis for measures that can be taken against foreign sanctions. If the Western bloc unilaterally imposes sanctions or discriminates against Chinese companies and officials under their domestic laws, or interferes in China's internal affairs, specific measures such as visa issuance refusal, entry denial, deportation, asset seizure, and prohibition of transactions with companies, individuals, and organizations of the respective countries can be taken, as stipulated in the law.

It also explicitly states that "other necessary measures" may be taken. However, it does not specify what these other necessary measures are. This opens the door for the Chinese government to take strong retaliatory actions depending on necessity and circumstances.

The scope of sanctions is broadly enumerated. Not only the sanctioned individuals but also their spouses and immediate family members become subject to sanctions. If the sanctioned entity is an organization or institution, the top (actual) manager of that organization is also subject to sanctions. If the sanctioned entity is an individual, the organization (institution) to which that individual belongs will automatically be sanctioned as well.

◆ Overseas companies operating in China also within reach = Furthermore, individuals and organizations that assist sanctioned persons or entities will also face retaliation under Chinese law. This is why there is an interpretation that foreign companies operating in China could become targets of sanctions. There is a possibility that overseas companies operating in China could suffer losses amid conflicts between China and anti-China blocs.

The chairman of the NPC Standing Committee's Legislative Affairs Commission explained the purpose of the law by saying, "China is no longer the China of 100 years ago," and "Chinese people will no longer suffer the same harassment as in the past."

Xinhua News Agency emphasized that this law is a "legal sword" to protect China's sovereignty and interests. It is a legal "toolbox" opposing unilateral Chinese sanctions, interference, and expanded jurisdiction by foreign countries. It also stressed that it will provide legal guarantees to respond to unilateral and discriminatory sanctions by foreign countries.

Earlier, in September last year, China's Ministry of Commerce announced regulations related to the "Unreliable Entities List," which is effectively a blacklist targeting the United States, and in January issued a ministry order to not comply with "unfair" foreign sanctions. This Anti-Foreign Sanctions Law forms the legal foundation for the Chinese government's sanctions against the Western bloc.

Global Times reported, "This Anti-Foreign Sanctions Law demonstrates the collective determination of the Chinese leadership to protect China's core interests," and added, "The law will have the effect of restraining the hegemony of the Western bloc."

◆ US-Taiwan declare resumption of trade talks = Meanwhile, on the same day, US and Taiwan trade representatives declared the resumption of trade negotiations despite China's objections. Katherine Tai, US Trade Representative (USTR), and Deng Zhenzhong (鄧振中), head of Taiwan's Trade Negotiation Office, held a virtual meeting the previous night and agreed to hold the 11th round of Trade and Investment Framework Agreement (TIFA) negotiations within weeks. TIFA is generally regarded as a preliminary step toward a Free Trade Agreement (FTA).

Previously, since the US and Taiwan began TIFA negotiations in 1994, they held 10 related talks, but the Trump administration had suspended TIFA talks with Taiwan. The negotiations are now resuming after several years.

This content was produced with the assistance of AI translation services.