By: Nathan BushQiang Li | Ray Xu

On June 10, 2021, the Standing Committee of the National People’s Congress (NPC) adopted the Anti-Foreign Sanctions Law of the PRC, which dramatically expands the potential regulatory penalties and civil liabilities for foreign persons acting contrary to Chinese national interests.

The Anti-Foreign Sanctions Law amplifies the risk to foreign companies, organizations and individuals that direct involvement with foreign legislative, regulatory and social activities inimical to Chinese national interests may jeopardize travel, commercial dealings and assets in China, for themselves and for affiliated entities and individuals.

But for many firms active in trade and investment with China, the chief risk under the new Anti-Foreign Sanctions Law may be the further narrowing of courses for navigating between conflicting measures and countermeasures from Washington and Beijing.

For more about the Anti-Foreign Sanctions Law and its implications, read our recent alert here.