China Enacts "Anti-Foreign Improper Extraterritorial Jurisdiction Law"

The Chinese government announced the implementation of the "Anti-Foreign Improper Extraterritorial Jurisdiction Law" on April 13. The law stipulates that if foreign countries implement improper extraterritorial jurisdiction measures that harm China's national sovereignty, security, and development interests, or infringe upon the legitimate rights and interests of Chinese citizens and organizations, the Chinese government has the right to take various countermeasures, including trade, investment, and other extraterritorial jurisdiction measures. The United States has imposed "secondary sanctions" on multiple Chinese companies, prohibiting third-country companies from trading with or providing technology to Chinese companies. The introduction of this countermeasure law by China is seen as a warning. Xinhua News Agency authorized the release on April 13, stating that Premier Li Qiang signed a State Council order to promulgate the "Anti-Foreign Improper Extraterritorial Jurisdiction Law of the People's Republic of China," effective from the date of promulgation. The "Regulations" aim to safeguard national sovereignty, security, and development interests, protect the legitimate rights and interests of Chinese citizens and organizations, and uphold the international order based on international law. The "Regulations" consist of 20 articles, primarily covering the following: First, clarifying the scope of application and working mechanism. If foreign countries violate international law and basic norms by implementing improper extraterritorial jurisdiction measures that harm China's national sovereignty, security, and development interests, or infringe upon the legitimate rights and interests of Chinese citizens and organizations, the Chinese government has the right to take corresponding measures. It explicitly states that "the Chinese government has the right to implement extraterritorial jurisdiction measures on acts that have appropriate connections with China." Second, establishing a system for identifying, blocking, and countering foreign improper extraterritorial jurisdiction measures. It stipulates that no organization or individual shall implement or assist in implementing foreign improper extraterritorial jurisdiction measures, and provides for relevant exemption systems. It specifies national-level countermeasures and restrictive measures, establishes an "evil entity list" system for foreign organizations and individuals who promote or participate in the implementation of foreign improper extraterritorial jurisdiction measures, and clarifies relevant procedures, measures to be taken, and exemption systems. For organizations and individuals who implement or assist in implementing foreign improper extraterritorial jurisdiction measures, a "prohibition order" system is established, and corresponding legal responsibilities are clarified. Third, improving the service and guarantee system. It stipulates that if any organization or individual implements or assists in implementing foreign improper extraterritorial jurisdiction measures that infringe upon the legitimate rights and interests of Chinese citizens or organizations, Chinese citizens and organizations may file lawsuits in accordance with the law. Relevant government departments above the provincial level provide guidance and services; industry associations and chambers of commerce play a role in industry self-regulation and coordination, providing members with services related to responding to foreign improper extraterritorial jurisdiction. Article 7 of the "Regulations" stipulates that the Chinese government can evaluate the actions of relevant countries in implementing improper extraterritorial jurisdiction measures, determine the risk level, and take "diplomatic, foreign affairs, entry and exit, trade, investment, international cooperation, foreign aid, and other aspects" of countermeasures and restrictive measures in accordance with the law. Article 8 of the "Regulations" specifies countermeasures and restrictive measures, including: denying visas, prohibiting entry, revoking visas or limiting exit, deporting; canceling or restricting the qualifications of relevant personnel to work, stay, or reside in China; sealing, seizing, and freezing their movable property, immovable property, and other types of property within China; prohibiting or restricting organizations and individuals within China from providing data or personal information to them, or engaging in relevant transactions or cooperation activities with them; prohibiting or restricting their engagement in import and export activities related to China; prohibiting or restricting their investment within China; prohibiting or restricting the entry of their products, transportation vehicles, etc.; fines and other necessary measures.