China Enacts Law To Counter Foreign Sanctions

In Short

The Development: China's National People's Congress passed the Anti-foreign Sanctions Law (the "Anti-Sanctions Law") on June 10, 2021, which took effect immediately. The legislation was adopted by China in response to certain restrictive measures imposed by other countries on Chinese citizens and organizations ("Chinese Persons").

The Significance: The Anti-Sanctions Law further expands China's existing toolkit of international trade measures and will affect multinational companies with operations in China as it will require them to ensure compliance with both the legal requirements in China and in other countries.

Looking Ahead: Although the commercial and legal impact of the new law currently remains uncertain, multinational companies with operations in China should review their existing compliance programs and consider whether adjustments are needed to adapt to the new legal requirements enacted by the Anti-Sanctions Law.