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ARTICLE · 19 FEBRUARY 2021

Chinese Government Introduces Rules Restricting Application Of Foreign Laws

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Last month the Ministry of Commerce of China ("MOFCOM") promulgated the Rules for Blocking Unjustified Extraterritorial Application of Foreign Laws and Measures (the "Rules").

GlobalInternational Law

Last month the Ministry of Commerce of China ("MOFCOM") promulgated the Rules for Blocking Unjustified Extraterritorial Application of Foreign Laws and Measures (the "Rules").

The Rules function similarly to other blocking regulations. They give MOFCOM the authority to prohibit Chinese citizens and entities from complying with any "unjustified foreign measures." Such measures refer to any overseas legislation or regulations that MOFCOM considers to "unjustifiably prohibit or restrict Chinese citizens, legal persons or other organizations from engaging in normal economic, trade and related activities with a third State (or region) or its citizens, legal persons or other organizations."1 The Rules therefore prohibit Chinese nationals and companies from complying with non-Chinese sanctions regulations and similar restrictions, if Chinese authorities so require.2 Like similar blocking regulations, the Rules may lead to complicated conflicts of laws scenarios,

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