Law Firm: Beijing Calls Out Firms, People Helping Implement China Sanctions
China’s recently published rules to further implement its anti-foreign sanctions law makes clear that Beijing could take legal action against anyone helping to implement a foreign sanction aimed at China, Wilmer Hale said in a recent client alert.
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The law firm said any organization or person in a foreign jurisdiction that helps to “implement or assist in the implementation of such restrictions” against China “may be subject to litigation in Chinese court which are deemed to discriminate against Chinese citizens or organizations” or otherwise interfere in or endanger China’s sovereignty or security. Those organizations or people may be subject to legal action “even if such actions are conducted overseas and in compliance with local law,” the firm said.
Wilmer Hale also noted that the new Chinese rules “expressly encourage” law firms and other professional services firms to provide legal services to help counter foreign sanctions, “presumably in Chinese courts.” This seems to be a “rare instance in which China’s authorities encourage (and implicitly promise support for) litigation,” the firm said.
“The Chinese authorities nevertheless appear to hope that the Regulations as well as the underlying statute will have a chilling effect upon foreign individuals and organizations actually or potentially critical of China.”