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InvestingWestern Companies "Shocked" After China Rushes Through Anti-Sanctions Law

Western Companies “Shocked” After China Rushes Through Anti-Sanctions Law

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There must be little doubt that the timing is intentional: China on Thursday handed its sweeping new regulation to ‘safeguard’ Chinese companies and entities from Western and particularly US sanctions, simply hours forward of President Joe Biden sitting down with G-7 leaders in Cornwall to argue for a typical stance on curbing China’s affect. AFP observes: “China’s quick rollout of a law against foreign sanctions has left European and American companies shocked and facing ‘irreconcilable’ compliance issues, two top business groups said Friday, despite Beijing saying the move would unlikely impact investment.”

The Anti-Foreign Sanctions Law, as we described earlier, is designed protect Chinese entities and establishments from “the unilateral and discriminatory measures imposed by foreign countries” and finally the “long arm jurisdiction” of the United States.  

It successfully permits the Chinese authorities to sanction all who adjust to US/EU sanctions by drawing a brilliant purple line, forcing entities to select whether or not to conform to Washington’s facet or Beijing’s facet. Upon its introduction early this week within the National People’s Congress there have been few particulars given, aside from vowing that “if Chinese entities are hit with unjustified sanctions, the proposed law is supposed to crystallize actionable countermeasures against the foreign governments and institutions…expecting the legal effort to make up for losses that Chinese entities would suffer.”

With the regulation’s passage, particulars have been revealed as follows:

Countermeasures within the Chinese regulation embrace “refusal to issue visas, denial of entry, deportation… and sealing, seizing, and freezing property of individuals or businesses that adhere to foreign sanctions against Chinese businesses or officials,” in accordance with the textual content revealed by the standing committee of the National People’s Congress, China’s high legislature.

Thus it “answers” present US ways in a severe escalation: whereas Washington at the moment typically seeks to punish third social gathering entities or international locations for direct and even oblique dealings with a sanctioned regime (the circumstances of Venezuela and Iran are clear examples, and even European corporations which labored on the Russia-to-Germany Nord Stream 2 pipeline), Beijing has now given itself the ‘authorized authority’ to do the identical. 

The overseas ministry introduced upon the regulation’s passage: “The law aims to firmly safeguard the sovereign dignity and core interests of the country and oppose Western hegemony and power politics,” in accordance with state media. And a Global Times op-ed asserted: “It will act as a powerful deterrent against countries imposing sanctions,” and additional: “We will not hesitate to fight back against forces that arrogantly challenge us and will continue to enrich our legal toolbox.”

And this is extra on the way it will coerce corporations into “choosing” to evolve to US or Chinese regulation, which might have devastating fallout down the road for Western corporations operating in China:

The restrictions can apply to members of the family of people who fall foul of Beijing.

The regulation additionally permits the nation’s courts to punish corporations that adjust to overseas legal guidelines, and says that companies or individuals in China don’t have to adjust to overseas restrictions.

Meanwhile, because the G-7 continues within the UK, Beijing officers blasted what they called “small circle diplomacy”. 

The Chinese Communist Party’s chief diplomat Yang Jiechi informed Antony Blinken in a telephone name forward of the summit that “genuine multilateralism is not pseudo-multilateralism based on the interests of small circles” in denunciation of what is being seen as an “anti-China” assembly.

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