NPC Standing Committee Passes Legal Basis for 'Counterattack Against US and Western Sanctions'

[Asia Economy Reporter Ki Ha-young] China’s top legislative body has passed a bill that provides grounds for retaliating against sanctions imposed by the United States and other Western countries.

The Standing Committee of the National People's Congress (NPC) of China held a meeting on the 10th at the Great Hall of the People in Beijing and voted to pass the "Anti-Foreign Sanctions Law," according to state media China Central Television (CCTV).

This law is a countermeasure in response to the United States strengthening sanctions against China, such as restricting imports of parts for Chinese companies like Huawei and imposing a complete ban on cotton imports from the Xinjiang Uygur Autonomous Region citing human rights issues.

Previously, China’s Ministry of Commerce announced regulations related to a so-called blacklist of "unreliable entities" targeting the United States in September last year, and in January issued a ministerial order to not comply with unfair foreign sanctions. This time, a legal basis has been established.

Xinhua News Agency reported that this law serves as a legal toolbox against foreign sanctions, interference, and extraterritorial jurisdiction, providing legal guarantees to counter discriminatory measures by foreign countries.

Some predict that China will use the Anti-Foreign Sanctions Law to force domestic companies not to comply with Western sanctions and pressure foreign companies operating in China not to associate with entities sanctioned by China. In such cases, concerns arise that companies may face a dilemma: if they comply with Western sanctions, they will face pressure from China, and if they do not, they risk problems with the United States and other Western countries.