Regulations to boost the implementation of the Anti-Foreign Sanctions Law entered into force on March 24, stipulating the procedures and countermeasures China could take in case a country imposes sanctions on Chinese entities. The law stipulates that any person or entity found to have implemented discriminatory measures against Chinese entities or citizens may be placed on an anti-sanctions list. The law was passed in June 2021, but the new regulations now improve its implementation. The 22-article regulations elaborate on the scope of the items and punishments included in countermeasures. They also set rules to refine coordination and implementation of the law by government departments. Any foreign country seen to be adopting discriminatory restrictive measures against Chinese organizations and citizens, interfering in China’s internal affairs, or endangering its sovereignty may be subject to countermeasures. Those on the anti-sanctions list can be denied entry into China, restricted from doing business in the country, and have their assets within China seized or frozen.
The regulations specify 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. Other types of property subject to seizure, detention, or freezing include cash, negotiable instruments, bank deposits, securities, fund shares, equity, intellectual property, accounts receivable, and other property and property rights.
Activities in the fields of education, science and technology, legal services, environmental protection, economy and trade, culture, tourism, health, and sports could be prohibited or restricted. “Other necessary measures” include, but are not limited to: 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.
The provisions authorize relevant State Council departments to order corrective actions against entities that fail to implement countermeasures in accordance with the law. Such entities may face prohibitions or restrictions on participating in government procurement, tendering and bidding activities, as well as import-export operations involving goods, technologies or international service trade. They may also be barred from receiving or transferring data and personal information across borders, and may face travel restrictions or limitations on their stay and residence in China. Organizations 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 regulations, the Global Times and the South China Morning Post report.
