China rolls out new rules to step up countermeasures to foreign sanctions

On Monday, the Chinese government announced that Premier Li Qiang has signed an order to enforce new regulations aimed at enhancing China’s responses to foreign sanctions.

The regulations pertain to the enforcement of China’s anti-foreign sanctions legislation, enacted in 2021. The legislation specifies that individuals or organizations engaged in creating or executing discriminatory actions against Chinese citizens or entities may find themselves on a sanctions list by the Chinese government.

Individuals included on the list might be barred from entering China or could be removed from the country. Their assets in China could be confiscated or frozen, and they might face limitations on conducting business with individuals or organizations in China.

The updated rules specify the areas where foreign individuals and entities may face restrictions. These encompass education, science and technology, legal services, environmental conservation, economy and commerce, culture, tourism, health, and athletics.

The rules also specify the actions the Chinese government may implement to enforce the countermeasures, including prohibiting or limiting individuals and organizations from importing and exporting associated goods and technologies.

In recent years, China has struggled with trade and investment restrictions imposed by leading Western markets. U.S. President Donald Trump imposed an extra 20% tariff on Chinese products starting in February, with the possibility of more increases by early April.

In retaliation, China has enacted counter-tariffs, restricted exports of specific resources such as rare earths, and initiated investigations into foreign firms. The anti-foreign sanctions legislation is an additional measure China can employ to retaliate against foreign nations for infringing upon what it claims is its right to progress.