China Passes Law against Foreign Sanctions

China has passed a new legislation against foreign sanctions. With this law China seeks to build its defences against rising US and EU pressure on trade and human rights.

Key Points

China passed this law after accusing US of suppressing Chinese firms and issued veiled threats of retaliation. This was done after US President Joe Biden expanded a blacklist of companies wherein Americans are barred from investing in.

What are the provisions of new law?

Chinese law has following countermeasure provisions:

  1. Refusal to issue visas, denial of entry & deportation.
  2. Sealing, seizing, and freezing property of individuals and businesses which is attached to foreign sanctions against Chinese businesses or officials
  3. Restrictions can also be applied to family members of individuals who fall foul of China.
  4. It allows Chinese courts to punish companies complying with foreign laws that damage national interests.


China is complaining since long about extra-territorial application of US law by means of sanctions and restrictions on trade. Joe Biden is also criticizing China in recent months with respect to theft of intellectual property and alleged human rights abuses in Hong Kong and Xinjiang.

Blacklisted American Companies

Several Americans companies are barred from investing in because of their links with Beijing’s military apparatus. 59 Chinese companies that are off-limits to American investors includes China Mobile, China Railway Construction Corp, video surveillance firm Hikvision and China National Offshore Oil Corporation (CNOOC).




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