China’s new rules on ‘unjustified’ foreign laws bolster ability to strike back at US long-arm jurisdiction
- Beijing has introduced rules to counter foreign laws that could hurt national security, businesses and individuals
- The move is seen as a response to tensions with the US, which has targeted Chinese entities with trade action
New rules strengthening China’s ability to strike back at “unjustified” foreign laws applied to citizens and businesses have been hailed as a necessary step to defend national interests, following a rash of sanctions from Washington on Chinese tech firms and politicians.
However, analysts do not expect any cases in the immediate future as the order lacks details and is seen largely as a defensive mechanism.
The rules on “counteracting unjustified extraterritorial application of foreign legislation”, which were introduced at the weekend, are widely seen as a response to escalating US sanctions and laws that have targeted Chinese businesses and individuals over the past year.
“It is just a countermeasure. The enforcement – how often and how far – will depend on whether US long-arm jurisdiction hurts the interests of Chinese enterprises,” said He Weiwen, a former commerce ministry official who is now a senior researcher with the Centre for China and Globalisation.