Chinese firms may be able to hit back at foreign partners under new anti-sanctions law

Expert says the legislation, which is expected to be passed on Thursday, will allow companies like Huawei to seek redress through mainland courts

Businesses outside China are said to be paying close attention to the new law but it’s not expected to be retroactive

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A guard tower and barbed wire fence are seen around a facility in the Xinjiang region, where China is accused of human rights abuses. Photo: AP

Published: 11:30pm, 9 Jun 2021Updated: 3:43pm, 10 Jun 2021

Tensions between China and the US may worsen with Beijing expected to pass a new law on Thursday that experts say will enable Chinese companies subject to Western sanctions to retaliate against foreign business partners in mainland courts.

The anti-sanctions law – aimed at providing a legal basis to counter foreign sanctions – is expected to be passed by China’s top legislative body, the National People’s Congress Standing Committee, at its closing session on Thursday.

It comes after the US Senate on Tuesday approved sweeping legislation intended to boost the country’s ability to compete with China and other measures including banning American officials from attending the 2022 Beijing Winter Olympics over human rights concerns.

In recent years, Chinese companies have been targeted by Washington for alleged military connections or human rights abuses. Telecoms giant Huawei Technologies was accused of violating US sanctions on Iran. The US and some of its allies have also imposed sanctions on mainland Chinese and Hong Kong officials over alleged human rights abuses in Xinjiang and their alleged roles in curtailing political freedoms in Hong Kong.

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The new legislation comes after a “blocking statute” was issued by the commerce ministry in January. Details of the new law have not been released, but legal experts say it is expected to allow Chinese companies hit by sanctions to claim compensation in mainland courts from foreign entities deemed to have aided and abetted those sanctions.

Chinese firms may be able to hit back at foreign partners under new anti-sanctions law

Expert says the legislation, which is expected to be passed on Thursday, will allow companies like Huawei to seek redress through mainland courts Businesses outside China are said to be paying close attention to the new law but it’s not expected to be retroactive

Expert says the legislation, which is expected to be passed on Thursday, will allow companies like Huawei to seek redress through mainland courts

Businesses outside China are said to be paying close attention to the new law but it’s not expected to be retroactive