China strengthens anti-foreign sanctions law amid growing US tensions
China has unveiled detailed implementing regulations for its anti-foreign sanctions law, a move that significantly bolsters its ability to target foreign entities and individuals amid intensifying tensions with the United States over technology and trade. The announcement, made by Premier Li Qiang on 24 March, highlights Beijing’s escalating efforts to counter what it perceives as growing economic and strategic pressures from Washington.
The regulation, comprising 22 articles and effective immediately, specifies additional types of assets subject to seizure and activities that can be prohibited under China’s counter-sanctions framework, state news agency Xinhua reported.
‘According to the regulation, China will enhance its countermeasures. It specifies the seizure, detention and freezing of “other types of assets,” “relevant transactions, cooperation and other activities” that are prohibited or restricted as well as “other necessary measures” stipulated in the anti-foreign sanctions law,’ Xinhua said.
Article 6(2) of the regulation defines ‘other types of property’ subject to seizure, detention, or freezing as including ‘cash, negotiable instruments, bank deposits, securities, fund shares, equity, intellectual property, accounts receivable, and other property and property rights,’ according to the official Global Times daily.
Article 6(3) specifies that prohibited or restricted activities include, but are not limited to, those in the fields of ‘education, science and technology, legal services, environmental protection, economy and trade, culture, tourism, health, and sports,’ the party-run newspaper noted.
Article 6(4) further defines ‘other necessary measures’ as including ‘prohibiting or restricting import and export activities related to China; prohibiting or restricting investment within China; prohibiting exports of relevant items to them; prohibiting or restricting providing them with data or personal information; revoking or restricting their relevant personnel’s work permits, stay, or residence qualifications in China; and imposing fines.’
China’s move to strengthen sanctions countermeasures comes amid escalating tensions with the United States, driven by a series of recent US actions targeting Chinese economic and strategic interests. The Trump administration’s decision to impose additional tariffs on Chinese imports under the International Emergency Economic Powers Act (‘IEEPA’) earlier this month has been a significant flashpoint. These tariffs, which added a further 10% on top of existing duties, have drawn sharp criticism from Beijing, which views them as a direct challenge to its economic sovereignty.
In response to US actions, China has not only announced retaliatory tariffs on US agricultural products but has also expanded its use of administrative measures, such as adding US companies to its Unreliable Entities List and imposing export controls on critical minerals, underscoring Beijing’s intent to leverage its newly detailed counter-sanctions framework to push back against what it perceives as economic coercion.
The fresh Chinese regulation empowers departments of the State Council ‘to conduct investigations and engage in external consultations when imementing countermeasures against foreign sanctions,’ according to China Daily, which noted that the original Anti-Foreign Sanctions Law was passed in 2021.
The new law ‘states that China has the right to take countermeasures, when foreign countries violate international law and the basic norms of international relations by suppressing China, imposing discriminatory restrictive measures on Chinese citizens and organizations, or meddling in China’s internal affairs,’ the newspaper added.
The regulation mandates that ‘relevant State Council departments shall undertake anti-foreign sanctions work according to their respective responsibilities and task allocations, while strengthening collaborative coordination and information sharing,’ according to Global Times. Non-com iant entities may face prohibitions on government procurement, import-export operations, cross-border data transfers, and travel restrictions for personnel, both state-run dailies said.
‘For those who fail to imement the countermeasures lawfully, relevant State Council departments have the authority to order corrections and prohibit or restrict their participation in government procurement, bidding and the import or export of goods, technology or international services trade,’ according to China Daily.
Organisations and individuals subject to countermeasures may request suspension, modification, or cancellation of the imposed measures if they rectify their actions and mitigate the consequences, according to the regulation.
