Multinationals With Operations In China May Be Feeling Caught Between A Rock And A Hard Place

The growing economic and political tension between the U.S. and China has placed multinationals with operations in China in a tenuous position – comply with U.S. sanctions laws, and in return, suffer economic backlash, or worse, from the Chinese government or consumers.

In recent months, China has taken several steps seemingly targeted at disincentivizing compliance with U.S. and other foreign laws, including enacting the Provisions on the Unreliable Entity List ("UEL"), the Measures on Obstructing the Unjustified Application of Foreign Laws and Measures (the "Blocking Measures"), and the Anti-Foreign Sanctions Law ("AFSL"), as well as enacting the Data Security Law and Personal Information Protection Law (collectively, "Data Laws"). In September 2021, China also signaled a reinvigorated anti-corruption campaign with a multi-agency announcement of newly issued "Guidelines." Beyond these legislative acts, Chinese agencies, media, and celebrities participated in