China Issues Blocking Rules To Counter Foreign Sanctions And Other Measures

On January 9, 2021, China's Ministry of Commerce ("MOFCOM") promulgated the Rules on Blocking Unjustified Extraterritorial Application of Foreign Legislation and Other Measures (阻断外国法律与措施不当域外适用办法) ("Blocking Rules").¹ The Blocking Rules took effect immediately without undergoing the normal 30-day public consultation period which China has committed to honor with respect to foreign-related legislation.²

Given the proximity in time to the ramped-up trade sanctions and other actions by the Trump Administration, it is tempting to interpret the timing of the Blocking Rules as an effort to take advantage of the disarray in the presidential transition in the US to respond to these recent actions. Among such recent actions which have caused anger in China are the sanctioning on December 7, 2020 of Vice-Chairpersons of the Standing Committee of the National People's Congress for actions curbing democracy in Hong Kong.³ The Blocking Rules are designed, however, to target