China Enacts Anti-Sanctions Law

On June 10, the Standing Committee of National People's Congress of China enacted the Anti-Sanctions Law (ASL) on an accelerated basis after only two rather than the normal three readings and without an opportunity for public comment. The ASL applies to sanctions imposed against China or Chinese parties by other countries, as opposed to sanctions imposed by the United Nations or other international bodies which China accepts. The ASL is effective immediately and as a blocking statute serves to both expand and coordinate China's efforts to respond to sanctions against Chinese entities and individuals.

The ASL differs from and goes beyond the scope of the Rules on Blocking Unjustified Extraterritorial Application of Foreign Legislation and Other Measures (Blocking Rules) promulgated by China's Ministry of Commerce on January 9.¹ The Blocking Rules are intended to block the extraterritorial effect of sanctions issued by foreign parties banning Chinese parties