China Announces Implementation of 'Anti-Foreign Improper Extraterritorial Application Law'

Central Message

(CNA, Taipei, April 13) China today announced the implementation of the "Anti-Foreign Improper Extraterritorial Application Law," which stipulates that if foreign countries implement improper extraterritorial measures that harm China's national sovereignty, security, and development interests, and 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 extraterritorial jurisdiction.

The United States has imposed economic, trade, and technological "secondary sanctions" with extraterritorial jurisdiction on several Chinese companies, prohibiting third-country companies from trading with Chinese companies or providing technology. The Xi-Biden summit is expected to take place in Beijing from May 14 to 15, and China's introduction of this countermeasure law today carries a strong warning.

Xinhua News Agency authorized the release on April 13 that Chinese Premier Li Qiang recently signed a State Council order announcing the "Law of the People's Republic of China on Countering Improper Extraterritorial Application of Foreign Laws and Measures," which came into effect on the date of its promulgation.

The report states that the "Law" aims 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 "Law" has 20 articles, mainly stipulating the following:

First, it clarifies the scope of application and working mechanism. If foreign countries violate international law and basic norms of international relations, implement improper extraterritorial measures that harm China's national sovereignty, security, and development interests, and infringe upon the legitimate rights and interests of Chinese citizens and organizations, the Chinese government has the right to take corresponding measures. It stipulates that "the Chinese government has the right to implement extraterritorial jurisdiction measures on acts that have appropriate connections with China."

Second, it establishes a system for identifying, blocking, and countering improper extraterritorial measures by foreign countries. It stipulates that no organization or individual shall implement or assist in implementing improper extraterritorial measures by foreign countries, and provides for relevant exemption systems; it stipulates national-level countermeasures and restrictive measures, targeting foreign organizations and individuals that promote or participate in implementing improper extraterritorial measures by foreign countries, establishing a malicious entity list system, clarifying relevant procedures, measures to be taken, and exemption systems, etc. For organizations and individuals that implement or assist in implementing improper extraterritorial measures by foreign countries, a prohibition order system is stipulated, and corresponding legal responsibilities are clarified.

Third, it improves the service guarantee system. It stipulates that if any organization or individual implements or assists in implementing improper extraterritorial measures by foreign countries, infringing upon the legitimate rights and interests of Chinese citizens and organizations, Chinese citizens and organizations may file lawsuits according to law. Relevant departments of governments at or above the provincial level provide guidance services; industry associations and chambers of commerce play a role in industry self-regulation and coordination, providing members with services related to responding to improper extraterritorial measures by foreign countries.

Article 7 of the "Law" stipulates that the Chinese government may evaluate the acts of relevant countries in implementing improper extraterritorial measures, determine the risk level, and take countermeasures and restrictive measures "in diplomacy, foreign affairs, entry and exit, trade, investment, international cooperation, foreign aid, etc." according to law.

Article 8 of the "Law" stipulates countermeasures and restrictive measures, including not issuing visas, not allowing entry, canceling visas or limiting exit, deporting, expelling; 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 in China; prohibiting or restricting organizations and individuals in China from providing data, personal information, or engaging in relevant transactions, cooperation, and other activities with them; prohibiting or restricting them from engaging in import and export activities related to China; prohibiting or restricting their investment in China; prohibiting or restricting their products, transportation vehicles, etc., from entering China; fines and other necessary measures. (Editors: Yang Sheng-ru/Chen Yen-chun) 1150413

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