China Responds to U.S. Polysilicon Sanctions with 'Anti-Foreign Sanctions Law' Countermeasures

Academic and Legal Circles Urge Application in the US and Allied Countries
Netherlands, Spain, Germany, Japan Major Importers of Chinese Solar Modules

[Asia Economy Beijing=Special Correspondent Jo Young-shin] China has indicated that it may retaliate against the U.S. sanctions on five of its solar industry-related companies through its "Anti-Foreign Sanctions Law." China's Anti-Foreign Sanctions Law, which came into effect on the 10th, allows for reciprocal retaliation if the Western bloc unilaterally discriminates against Chinese companies and individuals.

According to Chinese media including the state-run Global Times on the 25th, the U.S. Department of Commerce on the 24th (local time) added five Chinese companies?Hoshine Silicon Industry, Xinjiang Production and Construction Corps, Xinjiang Daqo New Energy, Xinjiang East Hope Nonferrous Metals, and Xinjiang GCL New Energy Materials?to the list of entities subject to export restrictions by U.S. companies.

[Image source=AP Yonhap News]

Gao Feng, spokesperson for the Chinese Ministry of Commerce, warned regarding the U.S. sanctions, stating, "The United States must immediately correct the measures it has taken. Otherwise, we will take 'necessary measures' to protect the legitimate rights and interests of Chinese companies."

Gao’s reference to "necessary measures" is interpreted as a nod to the Anti-Foreign Sanctions Law. This law provides a legal basis for retaliation, including visa issuance denial, entry refusal, deportation, asset seizure, and transaction bans, if Chinese companies suffer damage due to unilateral sanctions imposed by the Western bloc.

Chinese academia and legal circles have also urged the Chinese government to take strong countermeasures against the U.S. and other Western countries.

Gao Lingyun, a researcher at the Chinese Academy of Social Sciences, emphasized, "There is no clear evidence that Chinese companies subjected to unilateral U.S. sanctions have violated human rights or engaged in oppression," adding, "Chinese companies must stand up and fight for their rights and interests."

Some voices within China have raised concerns about the possibility of European Union (EU) countries following the U.S. sanctions and have called for preemptive responses.

The Global Times cited data from the China Photovoltaic Industry Association, pointing out that from 2019 to 2020, the export share of solar modules produced in China was concentrated in Europe. The report stated that 17.4% of the produced modules were exported to the Netherlands, with Spain and Germany receiving 5.1% and 3.3%, respectively. It explained that if some European countries join the U.S. sanctions, the Chinese solar industry could suffer damage. The media also added that 12.7% of exports during this period went to Japan.

Guan Zhen, a lawyer at a major Beijing law firm, expressed concern, saying, "The most worrisome issue is the U.S. following by some countries such as the EU," and warned, "In such a case, the Chinese solar industry could face stagnation." He suggested that China’s Anti-Foreign Sanctions Law could be applied to some countries in Europe.

Yang Yonghong, a professor at China’s Xinan Zhengfa University, warned, "China’s Anti-Foreign Sanctions Law will be applied to the U.S. and its follower countries," adding, "Relevant companies, their representatives, and immediate family members will be subject to sanctions."

Meanwhile, the Global Times reported that 45% of the world’s supply of solar panels and polysilicon for semiconductors is produced in China’s Xinjiang region. It explained that Xinjiang’s solar industry has enhanced the power competitiveness of Sichuan Province, Qinghai Province, Ningxia Hui Autonomous Region, and Inner Mongolia Autonomous Region compared to other parts of China. The report also added that domestic demand for solar modules in China alone is expected to reach 70 gigawatts (GW) this year.

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