China pushes back against US sanctions with new rules

Discussion in 'Economics' started by themickey, Jan 11, 2021.

  1. themickey


    China pushes back against US sanctions with new rules
    James Mayger and Dingmin Zhang
    Jan 11, 2021 – 7.26pm
    Hong Kong | China continued its pushback against US sanctions, issuing new rules to protect its firms from "unjustified" foreign laws and allowing Chinese courts to punish global companies for complying with foreign restrictions.

    The rules on "counteracting unjustified extra-territorial application" of foreign laws allow Chinese authorities to issue orders saying that companies or people in China do not need to comply with foreign restrictions, the Ministry of Commerce said in a statement.

    Earlier this month, the US banned transactions with Chinese apps like Ant Group's Alipay. AP

    The measures went into effect immediately, and although they do not mention the US directly, China has long complained about the extra-territorial application of US law through sanctions and restrictions on trade.

    The rules also allow Chinese citizens or companies to sue for compensation in Chinese courts if their interests are damaged by the application of foreign laws, and could put global companies in legal jeopardy in China for complying with US sanctions.

    "The new order will be enforceable in China primarily through court actions brought by parties who believe they've been damaged by someone else's compliance with a foreign sanction," Nicholas Turner, a lawyer at Steptoe & Johnson in Hong Kong who specialises in economic sanctions, said.

    banned transactions with Chinese apps like Ant Group's Alipay and Tencent Holdings' digital wallets, in addition to an ongoing effort to force the sale of TikTok by ByteDance. The New York Stock Exchange has also become involved, heeding calls from the Trump administration to delist certain Chinese companies.

    China initially responded to these efforts by announcing what it calls an "unreliable entity list", which aims to punish firms, organisations or individuals that damage national security, but it hasn't said if anyone is on that list. These new rules will add to that as-yet unused toolkit.

    Beijing also repeatedly pressured Canada to release Meng Wanzhou, daughter of Huawei billionaire founder Ren Zhengfei, after she was detained by Canadian authorities more than a year ago at the request of the US government on suspicion of violating US sanctions on Iran.
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  2. JSOP


    Great! SEC can apply to Chinese courts also for compensations and fines on fraudulent Chinese shell companies for defrauding US investor public in the amount of hundreds of millions of US$.

    Can't believe China would have the audacity of forcing foreign companies to disobey their own countries' laws basically being traitors to their countries just because they are operating on Chinese soil. Good riddance!! The world really needs to stop doing business with China and in China.

    And I think this Meng Wanzhou is having a better time in Canada than in China with her prolonged vacation there. LOL
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  3. VicBee


    I get your frustration with China and some all well deserved. I am wondering though how you feel about US sanctioning 3rd countries for doing business with countries on the US shit list? If bullying works for one, it works for those others who can bully.
    I would prefer no one be allowed to bully at all, except in multilateral efforts, but I cannot condone my country doing it and condemn other countries doing it.
  4. JSOP


    sanctioning 3rd countries? What do you mean 3rd countries? Which country is a 3rd country? LOL If you mean 3rd-party countries, they are not being sanctioned by US for doing business with countries on the list of countries being sanctioned by the US. They voluntarily chose to abide by agreements with US for not doing business with countries on the US sanction list. And they face consequences when they break those agreements especially through fraudulent means. That's not being bullied unlike how they will be punished in China for abiding by their own laws which involve agreeing to the US's sanctioned countries list. China had never had any problems with the US sanctioned list before; it's only raising a stint now because it itself is ending up on the list. LOL If you are condoning "your country" (seeing you are from Singapore) from doing it, you are several decades late. LOL

    And trust me. China has its own sanction list too. It's just that its economic position was never strong before so that list didn't mean anything. Now that it has a strong economic position, it wants to flex its economic muscle. This is economic muscle-flexing that's all, nothing else.
    gowthamn likes this.
  5. ajacobson


  6. VicBee


    You think European nations willingly don't trade with Iran because they support their US ally? No, they don't because otherwise European interests will be hit with US sanctions. That's not bullying? And why should European be enemies of Iran again? Right, because they threaten Israel, the US 51st state. So, by inference, European nations are arm wrestled to support US policies. You don't see it perhaps because you're American and view anything we do as protecting democracy and spreading freedom... Not! We protect our interests which are primarily economic, except for Israel, but they buy Coca-Cola.
    I'm American living in Singapore, not that it matters. I just try to be consistent when approving or criticizing peoples and countries.
  7. VicBee


    After fkg with the American system, Trump wants to fk with the global economy. None of this will be once he leaves office unless Biden wants a bight of something. Recognizing Taiwan and Jerusalem in Israel are the only 2 positive things I can think came from Trump.
  8. JSOP


    No they can choose not to do business with US. Plenty of countries don't do business with US and they are doing ok. Iran is a bully in itself, not just to Israel but to other countries in the middle east as well. Any countries that it finds does business with Israel or US, it punishes them. China is another bully. Glad you brought up Taiwan. Any country that chooses to be friendly with Taiwan by just inviting a minister from Taiwan of a tiny department gets the wrath of China, not just economically but even politically. So if you don't like "bullying" by the US then you should equally condemn if not condemn even more countries like Iran and China or bullying other countries, and you should applaud the US for standing up to bullies like Iran China and is able to mobilize other countries to do the same, that is if you want to be consistent in your efforts in approving or criticizing countries.
    Last edited: Jan 12, 2021
    gowthamn likes this.
  9. VicBee


    I'm not saying China isn't a bully, I'm saying the US is equally a bully. 2 wrongs don't make a right and I would rather neither bully anyone, except within an international body or willing coalition to force a country to change its ways, like North Korea.
  10. JSOP


    Like I said if you see that China is also a bully, then you should be happy US is standing up to it. And it's other countries' job to rally behind someone who is standing up to bullies especially if you claim you are an American.
    #10     Jan 12, 2021
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