China approves law to counter foreign sanctions

China has passed a law to counter foreign sanctions, as it strives to resist US and EU pressure over trade, technology, Hong Kong and Xinjiang.

Individuals or entities involved in making or implementing discriminatory measures against Chinese citizens or entities could be put on an anti-sanctions list by a "relevant department" in the Chinese government.

Those on the list may be denied entry into China or be expelled from China. Their assets within China may be seized or frozen. They could be restricted from doing business with entities or people within China.

The new law is China's latest and most wide-ranging legal tool to retaliate against foreign sanctions and is intended to give Chinese retaliatory measures more legitimacy and predictability, according to local experts.

Foreign companies, however, worry about the dampening impact it might have on foreign investment.

China's top legislature, the National People's Congress (NPC) standing committee passed the law on Thursday, according to state television CCTV.

Restoring stability

All 14 vice-chairpersons of the committee are under US sanctions for passing the National Security Law last year that critics say has crippled political freedoms in Hong Kong. Beijing says it was needed to restore stability in the city.

President Xi Jinping called last November for the ruling Communist Party to use legal means to defend China's sovereignty, security and interests against foreign parties.

The NPC said in its annual work report in March that it wants to "upgrade our legal toolbox" to address the risks from foreign sanctions and interference.

In January, the commerce ministry announced mechanisms to assess if foreign restrictions on Chinese trade and business activities were justified, and for Chinese individuals or companies to sue for compensation in a Chinese court.

Counter-sanctions

The United States and its allies have increasingly sanctioned Chinese officials to express concern about how China treats its Muslim Uyghur minority in Xinjiang and pro-democracy activities in Hong Kong, triggering counter-sanctions by China on US and EU policitians and officials.

Washington has also targeted Chinese companies such as Huawei and ZTE for violating US sanctions on Iran or North Korea, an act China called "long-arm jurisdiction".

The bill underwent a secret first reading in April, and was passed on Thursday, barely two days after NPC announced that it was doing a second reading of the bill. It skipped a third reading normally needed for other bills.

Chinese experts say Beijing is simply taking a page from the playbooks of the United States and European Union, which in recent years have passed various acts to serve as a legal basis for their engagement with China.