[Law]-JUN 20 2021, China Approved Law on Countering Foreign Sanctions

China's top legislature passed a law on countering foreign sanctions on June 20, 2021 to better safeguard the country's sovereignty, security and development interests. President Xi Jinping signed a presidential order to promulgate the law, which takes effect immediately.

After a second deliberation, the Standing Committee of the National People's Congress, the nation's top legislature, adopted the law on countering foreign sanctions when it concluded its session.

According to the 16-article law, relevant departments of the State Council can decide to put foreign individuals or organizations on a sanctions list if they find them to have violated international law and basic norms of international relations, used various excuses or their own laws to contain or suppress China, taken discriminatory restrictive measures against Chinese citizens or organizations, or interfered in China's internal affairs. The countermeasures for those on the list include denial of visa issuance, denial of entry into China, cancellation of a visa or expulsion from the country, the law said.

The Legislative Affairs Commission of the NPC Standing Committee said in a statement on Thursday that drafting, reviewing and passing such a law in a short time met an urgent need to counter the hegemony and power politics of some Western countries as well as to safeguard China's sovereignty, security and development interests. It also will promote the rule of law at home and abroad in a coordinated way.

The law is of great practical and long-term significance, the commission said, adding that it will effectively improve China's legal capabilities in dealing with external risks and challenges and accelerate the formation of a comprehensive legal system involving foreign affairs.

Besides the law, China has similar anti-sanctions measures in some current laws, such as a law on export control, and its legislation on opening-up has also been speeded up in recent years, according to the commission.

Interpretations on the newly promulgated law on countering foreign sanctions:

Who is the target of the law?

According to the law, relevant authorities under the State Council – China's cabinet – can directly or indirectly participate in formulating, deciding and enforcing a countermeasure list targeted at individuals and entities that have taken discriminatory measures against Chinese citizens and organizations under the pretext of their domestic laws.

Targeted groups of the countermeasure list can be expanded to their relatives, spouses, the organizations led by those targeted individuals or operated by them.

The law only takes aim at those entities and individuals who grossly interfere in China's internal affairs and spread rumors about and smear, contain and suppress China, said Li Qingming, a research fellow with the Chinese Academy of Social Sciences, in an article published by China's official news agency Xinhua.

What countermeasures are stipulated by the law?

The law specifies three types of countermeasures, which include:

• Refusing to issue visas, banning entry into China, invalidating visas, and deportation;

• Sealing up, seizing and freezing movable, immovable and other types of property in China;

•Prohibiting from conducting related transactions with domestic organizations or individuals;

It also includes "other necessary measures."

China also has set up a working mechanism in responding to foreign sanctions that also coordinates relevant work, including information sharing. Chinese authorities such as the State Council are responsible for releasing the list of countermeasures, which could be suspended or changed if necessary.

Will the law affect the trade environment in China?

No. 

Some people are concerned that whether the enactment and implementation of the anti-foreign sanctions law will adversely affect China's opening to the outside world.

The official of the Legislative Affairs Commission of the Standing Committee of the NPC gave the answer – "the law will not affect China's opening-up." 

"China's determination and will to deepen reform, expand opening-up and safeguard its national sovereignty, security and development interests stand firm," the official said.

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