Regulations on unlawful foreign jurisdiction issued

A new set of regulations, comprising 20 articles, to counter unlawful extraterritorial jurisdiction measures imposed by foreign states, took effect on their publication on Monday.

According to the rules, such extraterritorial jurisdiction measures refer to actions taken by a foreign country violating international law and the basic norms governing international relations and that harm China's sovereignty, security and development interests, or the legitimate rights and interests of Chinese citizens and organizations.

The rules also stipulate that the Chinese government has the authority to take countermeasures in response to such actions. They also stipulate that the Chinese government has the authority to exercise extraterritorial jurisdiction over relevant conduct where a sufficient nexus exists.

The regulations establish a malicious entity list targeting foreign organizations and individuals promoting or participating in the implementation of a foreign state's unlawful extraterritorial jurisdiction measures.

They also make clear that no organization or individual may enforce, or assist in enforcing, such unlawful jurisdiction measures.

In addition, the regulations state that Chinese citizens and organizations affected by unlawful extraterritorial jurisdiction measures may file lawsuits against those involved in enforcing them, while relevant government authorities will provide guidance and support for such legal action.

Chinese authorities have repeatedly expressed firm opposition to the abuse of unilateral sanctions and long-arm jurisdiction.

China's law on countering foreign sanctions was adopted in 2021. Key meetings of the Communist Party of China in recent years have also pledged to strengthen mechanisms for countering foreign sanctions, interference and long-arm jurisdiction.

Zhao Hai, director of international political studies at the Chinese Academy of Social Sciences' National Institute for Global Strategy, said that the regulations show China's firm resolve to safeguard its right to development and legitimate interests amid growing disorder in global economic governance.

"They were issued at a time when economic nationalism and protectionism continue to rise worldwide," he said.

As unlawful extraterritorial jurisdiction has taken new forms, and pressure has continued to intensify, Zhao said that the international free trade system and China's normal overseas trade and investment have come under serious threat.

"It is therefore necessary to make overall arrangements at the national level and coordinate countermeasures to effectively safeguard China's overseas interests amid complex changes in the international landscape and turbulence, and transformation in the global order," he said.

According to Zhao, when companies encounter unlawful extraterritorial jurisdiction, they will have the backing of the country, a sound legal basis and a full range of response tools.

"This will greatly raise the cost for certain countries seeking to maliciously undermine China's overseas interests and create a strong deterrent against illegal acts and breaches of contract," he added.

Shi Xiaoli, a professor of international economic law at China University of Political Science and Law in Beijing, said that the new regulations consolidate and expand China's existing legal and policy toolbox to counter discriminatory foreign measures targeting the nation.

She said that, among other measures, the regulations propose the establishment of a working mechanism to respond to foreign states' unlawful extraterritorial jurisdiction, the creation of a malicious entity list, and a more diversified set of countermeasures against those on the list.

"Through this institutionalized and authoritative legislation, China has demonstrated its firm resolve to safeguard its legitimate rights and interests," Shi said.

She added that the regulations were also introduced to uphold the international order based on international law and to help advance a more just and equitable global governance system.

mojingxi@chinadaily.com.cn