China’s Premier Li Qiang has signed a law in response to foreign sanctions into effect. The implementation of the law is set to begin on Monday, according to the Chinese news agency Xinhua. The law aims to standardize and coordinate procedures, as well as make countermeasures more effective. It includes measures such as the freezing of assets, transactions and cooperation and the possibility of prohibiting or regulating investments by foreign investors. Trade restrictions are also envisioned. China has previously been relatively restrained in its response to foreign sanctions. The new law outlines sharper reactions to such measures.
The law also assigns specific responsibilities for the implementation of countermeasures, aiming to streamline the process. Moreover, it aims to better connect the relevant departments within the State Council to ensure a swift information flow. The law also envisions a more effective control mechanism to ensure that Chinese companies comply with government regulations. The law further provides for a regulated procedure for the lifting of sanctions against a company. Companies that have been sanctioned can request a change or revocation of the measures if they can demonstrate compliance with the sanctions’ requirements.
The law marks a departure from China’s previous approach, as the country has generally been cautious in responding to sanctions. The move comes at a time when the trade war between the US and China, as well as between the EU and China, is becoming more apparent.