China passed a law Thursday in response to foreign sanctions. while trying to spread pressure from the US and the European Union on trade, technology, Hong Kong and Xinjiang.
The new law is China’s latest and most versatile legal tool in response to foreign sanctions. It aims to make China’s countermeasures more just and predictable. Quote from local experts
However, foreign companies are concerned about the potential impact on foreign investment.
National Legislative Assembly of China The National People’s Congress (NPC) Standing Committee passed the law on Thursday. According to state broadcaster CCTV, details of the contents have not been disclosed.
The committee’s 14 vice presidents are subject to US sanctions. The base passed a national security law last year. which critics say has undermined political freedom in Hong Kong. Beijing said it needed to restore stability in the city. Read more
President Xi Jinping called in November last year. Let the ruling Communist Party use legal means to protect China’s sovereignty, security and interests to foreign parties.
The NPC said in its annual work report in March that it wanted “Upgrade our legal toolbox” to deal with the risks of sanctions and foreign interference. Read more
in january The Ministry of Commerce has announced a mechanism to assess whether foreign restrictions on China’s trade and business activities are reasonable. and for Chinese individuals or companies to sue for compensation in Chinese courts. Read more
The United States and its allies It has increasingly boycotted Chinese officials to express concerns about how China treats the Muslim Uighur minority in Xinjiang. and activities to support democracy in Hong Kong It sparked opposition to Chinese sanctions on US politicians and officials. and the European Union
Washington has also targeted Chinese companies such as Huawei and ZTE for violating US sanctions. against Iran or North Korea which is what China calls “Long-term Jurisdiction”
The bill was first read in secret in April. and passed on Thursday Almost two days after the NPC announced it was reading the bill for the second time. It skips the third reading, which is usually for other bills.
The European Union Chamber of Commerce said members were alarmed by the lack of transparency about the legislation.
“China seems to be in a hurry. Such actions are not conducive to attracting foreign investment or companies that make them more confident that they will be used as pawns in political chess,” Chamber of Commerce Chairman Joerg Wuttke told Reuters.
Foreign firms looking to do business in China may find themselves opposed to increased scrutiny from Chinese regulators involved in both domestic and foreign operations, said Shaun Wu of Hong Kong-based law firm Paul Hastings.
Chinese experts say Beijing is just taking a page from the US and EU handbooks. It has gone through a series of actions in recent years as a legal basis for its involvement with China.
“China previously had neither the economic power nor the political will to use legal means to counter US sanctions, now it has both,” said Wang Jiangyu, a law professor at the City University of Hong Kong.
“Cooperation is the best option, but the US doesn’t want it, so retaliation, like this new law. It’s the second best choice. Pulling it out is the worst,” he said.
Our Standard: Thomson Reuters Trust Principles