China has intensified its judicial reach globally with new laws affecting multinationals and individuals. These regulations aim to combat the sanctions imposed by the United States, according to expansion.com.
China is expanding its legal framework beyond its borders with the goal of strengthening its influence in global governance and countering the US sanctions regime. In recent months, Beijing has implemented several laws covering everything from compliance with foreign sanctions to the investigation of Chinese supply chains.
These regulations foresee severe penalties and restrictions, such as the prohibition of leaving the country for individuals and companies involved. According to lawyers, this network of regulations also applies to actions taken outside of China, increasing the risk for multinationals operating globally.
The Chinese president, Xi Jinping, has accelerated these efforts as part of an attempt to counter his geopolitical rivals and reconfigure the international model to suit China's interests. Analysts emphasize that these changes could escalate tensions with the United States, especially with the imminent meeting between Xi and Donald Trump in Washington.
This year, China has enacted at least five laws with extraterritorial reach and more are expected to be in development. The Ministry of Justice has indicated that over 50 regulations on foreign affairs will be in effect until 2024.
Among the most significant regulations is Order 834, which limits the collection of information by foreign companies regarding Chinese supply chains, and Order 837, which regulates how Chinese companies can make investments abroad.
These measures reflect Beijing's discontent with the unilateral sanctions imposed by the United States and other countries, and are part of a broader effort to protect Chinese economic interests internationally.
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