If you’re curious about how China responds when other countries impose sanctions, this article is for you. 

The China Anti Foreign Sanctions Law is China’s official answer to foreign penalties, giving the government the legal power to impose countermeasures on individuals, companies, and organizations that participate in sanctions against China. 

Whether you’re a business owner, a global worker, or interested in international affairs, this law can affect you in ways you might not expect. 

Want to know what the law really means, how it works, and why the world is watching? Read on to get all the answers and tips on what you should do next.

What Is the China Anti Foreign Sanctions Law?

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The China Anti Foreign Sanctions Law is a national law passed on June 10, 2021, by the Standing Committee of the National People’s Congress. 

Its main purpose is to provide a legal basis for China to take countermeasures against foreign sanctions, especially those imposed by countries like the United States, European Union, and United Kingdom. 

The law empowers the Chinese government to respond when foreign governments target China, its citizens, or organizations with penalties or bans. 

In simple terms, if another country tries to hurt China with sanctions, China can take legal action in return.

Why Did China Introduce the Anti Foreign Sanctions Law?

Understanding why China created this law helps explain its significance in world affairs. The law was introduced as a direct response to a rise in foreign sanctions against China.

• In recent years, the United States, United Kingdom, European Union, and others have increased sanctions on Chinese officials and entities, often citing human rights concerns in Xinjiang, Hong Kong, and technology disputes.
• These sanctions targeted specific Chinese individuals and organizations, sometimes restricting trade and financial transactions.
• China enacted the Anti Foreign Sanctions Law to:
  
  • Provide a legal framework for retaliation and protection of Chinese interests
  • Deter foreign governments and entities from participating in such sanctions
  • Respond quickly and effectively to new sanctions as they arise

This law is part of a broader effort by China to create rules that protect its interests in a changing global landscape.

📖 Also read: China Data Localization Laws for Foreign Companies

How Does the China Anti Foreign Sanctions Law Work?

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Many people want to know how the law actually works. Understanding the process is important for anyone involved in international business or politics.

• The law authorizes the State Council and its departments to designate individuals and entities for countermeasures if they are involved in formulating, deciding, or implementing discriminatory restrictive measures against Chinese citizens or organizations.
• Countermeasures can include:
  
  • Denying visas or entry into China
  • Deportation
  • Sealing, seizing, or freezing property and assets in China
  • Prohibiting transactions and cooperation with Chinese individuals or organizations
  • Other unspecified measures as determined by authorities
• Organizations and individuals within China’s territory are required to implement these countermeasures as directed by the government.
• The law’s broad language gives authorities significant flexibility in deciding who to target and what actions to take.

Key Provisions and Features of the China Anti Foreign Sanctions Law

To really understand the law, it helps to look at its main features and rules. This shows just how much authority the Chinese government has under this law.

• Important articles in the law include:
  
  • Article 3: Authorizes countermeasures for foreign discriminatory restrictive measures against Chinese citizens or organizations.
  • Article 5: Provides for a countermeasure list (similar to a sanctions list) of targeted individuals and organizations.
  • Article 12: Requires organizations and individuals within China to comply with the implementation of countermeasures.
• “Discriminatory restrictive measures” is not precisely defined in the law, giving the Chinese government broad discretion.
• These measures can include bans on certain products, financial restrictions, or blocking Chinese technology or apps.
• If someone is put on the sanctions list, they may appeal to the Chinese government, but the law does not provide a detailed process or guarantee of a fair hearing. The final decision remains with the authorities.

Impact of the China Anti Foreign Sanctions Law on Foreign Businesses and Individuals

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If you do business in China or work with Chinese partners, it’s important to understand the risks this law brings. Both companies and individuals can be affected.

• Foreign businesses could:
  
  • Face market access restrictions
  • Have their assets in China frozen
  • Encounter legal risks if they comply with their home country’s sanctions against China, which may conflict with Chinese law
• International employees and partners might:
  
  • Be denied entry to China
  • Face other restrictions if their company is sanctioned
• Since the law was passed, China has announced countermeasures against politicians, companies, and organizations from countries that have criticized or sanctioned China. 

These countermeasures are not automatic but are applied at the government’s discretion and can include travel bans, asset freezes, and bans on doing business with Chinese companies.

📖 Also read: China Company Dissolution Process for Foreign Entities

China Anti Foreign Sanctions Law vs. Other Countries’ Sanctions Laws

Comparing China’s law with similar laws in other countries helps explain what makes it unique and why it matters globally.

• US and EU sanctions laws:
  
  • Have a long history of being used as tools in international politics
  • Usually announce sanctions publicly and allow for some legal review or challenge
• China’s law:
  
  • Is focused on responding to foreign sanctions rather than initiating them
  • Gives the government broad power to decide who gets sanctioned and how
  • Can have extraterritorial effects, targeting entities outside China if they are involved in foreign sanctions, though practical enforcement is limited

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Global Reactions to the China Anti Foreign Sanctions Law

The world has been paying close attention to this law. Reactions have been strong, especially from Western countries and global businesses.

• Many Western governments and business groups have expressed concern about the law’s impact on global trade and legal uncertainty.
• The law has contributed to increased tension between China and countries like the US, UK, and the European Union, adding to a growing trade and political rivalry.
• Global businesses worry about being caught between their home country’s sanctions and China’s anti-sanctions law. Some have reviewed their compliance policies and business strategies to address the added complexity.

📖 Also read: China Anti Corruption Law

Conclusion

The China Anti Foreign Sanctions Law is a powerful tool that allows China to respond to foreign sanctions and protect its interests. It adds complexity for foreign governments, businesses, and individuals involved in China. 

Understanding this law and staying up to date as it evolves is crucial for making informed decisions and managing risks.

If you have questions or need legal advice about the China Anti Foreign Sanctions Law or any other legal matters in China, the team at Choi & Partners is ready to help. Their expertise can guide you through complex regulations and support your business or personal interests in China.

Frequently Asked Questions About the China Anti Foreign Sanctions Law

Are there sanctions on China right now?

Yes, there are currently sanctions on China from countries such as the United States, United Kingdom, Canada, and the European Union. These sanctions target Chinese officials and entities, mainly due to concerns over human rights, trade, and technology issues.

Can the US impose sanctions on China?

The United States can and does impose sanctions on China. This includes banning American companies from doing business with certain Chinese firms, freezing assets, and restricting travel for Chinese officials. The US uses sanctions as a way to respond to issues such as trade disputes, technology concerns, and human rights allegations.

Who did China sanction?

China has used its Anti Foreign Sanctions Law to impose countermeasures on politicians, academics, think tanks, and organizations from the US, EU, UK, and other countries that have imposed sanctions on China. These countermeasures have included travel bans, asset freezes, and prohibitions on doing business with Chinese entities.

What was the anti foreign movement in China?

The anti foreign movement in China refers to historical events, such as the Boxer Rebellion in the late 1800s and early 1900s, where Chinese groups resisted foreign influence and intervention. While the current law is not directly related to those historical movements, both share the idea of China standing up to outside pressure and influence.

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