China’s New Blocking Statute May Apply to Multinational Companies

China’s Ministry of Commerce (MOFCOM) published the Rules on Counteracting Unjustified Extraterritorial Application of Foreign Legislation and Other Measures (the Blocking Statute) on January 9. The Blocking Statute appears to be intended to deter multinational companies and their China subsidiaries from complying with foreign sanctions against Chinese persons.

Playlist - Datasource Item: Chinas New Blocking Statute

The Blocking Statute authorizes government entities in China to take impactful measures, including issuing prohibition orders declaring foreign sanctions unenforceable, penalizing Chinese persons for violating the prohibition orders, and allowing Chinese persons to seek damages from entities that comply with the foreign sanctions. The Blocking Statute also authorizes Chinese government agencies to take “counter-measures” including adding foreign entities or individuals to MOFCOM’s Unreliable Entity List and prohibiting them from engaging in China-related import or export activities.

In this webinar, our international trade and sanctions practitioners based in the US and China will discuss these developments and their impact on multinational companies (MNCs) operating in China.  

Topics include:

• The basics of the Blocking Statute
• The implications of the Blocking Statute on MNC operations in China, including:
  
  • The obligations placed on MNCs and their China-based affiliates  
  • The impact on affiliated entities 
  • Affirmative reporting obligations