China expands asset powers: New rules target foreign sanctions
China announced new implementing regulations for the law counteracting foreign sanctions, as reported by the government daily "Renmin Ribao" on Tuesday. As part of retaliatory measures, Beijing authorities have gained broader powers to freeze and confiscate assets.
China is tightening the enforcement of the anti-sanctions law, threatening asset confiscation. Premier Li Qiang signed the new regulations on Monday.
The law counteracting foreign sanctions was enacted in 2021. It allows China to introduce retaliatory measures against individuals and entities involved in creating or implementing discriminatory measures against Chinese citizens or institutions.
According to the implementing regulations, Chinese authorities will be able to freeze or confiscate numerous assets, including cash, securities, equity in funds, intellectual property rights, and receivables of individuals listed by Beijing on the anti-sanctions list.
The definition of "transactional and cooperative activities" that may be banned or restricted has also been expanded. Individuals and entities from abroad may be prohibited from operating in sectors such as education, legal services, science and technology, economy and trade, culture and tourism, environmental protection, and sports.
Secondary sanctions. Ctakes example from the USA
The new regulations also provide penalties for entities that do not comply with China's sanctions. These may include a ban on participating in public procurement, restrictions on foreign trade, a ban on data transfer abroad, and travel restrictions to China.
Foreign media have pointed out that the new regulations are a response to increasing pressure from the West, particularly the United States, which has imposed numerous sanctions on Chinese enterprises and government representatives.
