After three years of sanctions from the U.S. and European Union, China has struck back. In a tit-for-tat retaliatory response to those sanctions, China passed a law that provides more hurdles and challenges for U.S. businesses wanting to or already conducting business in the world’s most populous country.
On June 11, China passed a broad and sweeping law, countering those sanctions against Chinese companies and government officials. The law’s message is clear in declaring that by agreeing with U.S. and European Union sanctions on China, American companies face stiff sanctions in China.
Nervousness within business world
China’s Anti-Foreign Sanctions Law seems broad, yet unclear. However, its passing has brought nervousness to many within the global business community. The law codifies many retaliatory actions that China already has implemented as a result of the Western sanctions.
However, the new law apparently targets foreign politicians who lobbied for and passed sanctions on China in their respective countries. As a result of the law, this group and their family members could face consequences that may include:
- The denial of visas to China
- The seizure of properties in China
- The blocking of any type of commercial transaction with a Chinese institution
Many global companies understand the seriousness of the law even if they do not understand all the details within the law. Regardless, these companies know that they will face another layer of challenges. One thing is clear from the law, though, is that the decisions to sanction companies and their employees remain final and cannot be appealed.