China’s Anti-Foreign Sanctions Law: Considerations and Implications of the Blocking Statute

Almost six months have passed since China’s Ministry of Commerce (MOFCOM) published the Rules on Counteracting Unjustified Extraterritorial Application of Foreign Legislation and Other Measures (the Blocking Statute). The Blocking Statute authorized government entities in China to take substantive 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 authorized Chinese government agencies to take “countermeasures” including adding foreign entities or individuals to MOFCOM’s Unreliable Entity List (comparable to the US Department of Commerce Entity List) and prohibiting them from engaging in China-related import or export activities. On June 10, 2021, China implemented the Law to Counter Foreign Sanctions (Anti-Sanctions Law). As newly issued legislation, the potential impact of the law remains to be seen. Given the US-China relationship, the outcome of the G7 meeting, and various public statements by a number of governments, we will discuss what this legislation may mean for global companies doing business in China.

Join Giovanna M. Cinelli and K Lesli Ligorner, international trade and sanctions practitioners based in the United States and China, respectively, to discuss the impact of the Blocking Statute and Anti-Sanctions Law in light of the current and last administration’s actions around sanctions, the Entity List, military uses, and Xinjiang and Hong Kong.

TOPICS WILL INCLUDE:

• Basics of the Blocking Statute and Anti-Sanctions Law 
• Underlying rationales for the Blocking Statute and Anti-Sanctions Law 
• Implications of the Blocking Statute and Anti-Sanctions Law on multinational corporation (MNC) operations in China, including: 
  
  • Obligations placed on MNCs and their China-based affiliates 
  • The impact on affiliated entities
  • Affirmative reporting obligations 
• The impact of the Blocking Statute and Anti-Sanctions Law on commercial documentation and overall engagement with non-Chinese parties