CHINA Law and Practice Contributed by: Xing Nan (Nancy), AnJie Broad Law Firm
In short, whether the foreign entities conduct the above behaviours out of intent or negligence is not considered by the authorities according to the above- mentioned provisions.
The Rules on Counteracting Unjustified Extra-ter - ritorial Application of Foreign Legislation and Other Measures issued by the Ministry of Commerce of China require Chinese entities to truthfully report to the competent commerce department of the State Council within 30 days when encountering situations where foreign laws and measures prohibit or restrict their normal economic and trade activities with third countries (regions) and their citizens, legal persons, or other organisations. 3. Recent and Future Legal Developments 3.1 Significant Court Decisions or Legal Developments On 10 June 2021, the Anti-Foreign Sanctions Law of the People’s Republic of China officially came into effect, specifying the situations in which China has the right to take countermeasures, including: • foreign countries violating international law and basic norms of international relations, using various excuses or, based on their own laws to contain and suppress China, adopting discriminatory restrictive measures against Chinese citizens and organisa - tions, and interfering in China’s internal affairs; or • foreign countries, organisations, or individuals committing, assisting, or supporting actions that endanger China’s sovereignty, security, and devel - opment interests. On 1 July 2023, the Law on Foreign Relations of the People’s Republic of China began to be implemented officially. According to Article 33, the People’s Repub - lic of China has the right to take, where appropriate, measures to counter or take restrictive measures against acts that endanger its sovereignty, national security and development interests in violation of international law or fundamental norms governing international relations. On 1 January 2024, the new Civil Procedure Law of the People’s Republic of China came into effect. Article 300 stipulates that if a court determines that an effective judgment made by a foreign court vio - lates the basic principles of the laws of the People’s
2.3 Licensing 2.3.1 Derogation
There is no licence permitting derogation from sanc - tions currently under sanctions law in China. The sanctions decisions made according to the Anti-For - eign Sanctions Law of the People’s Republic of China are final. However, according to the Provisions on the Provi - sions on the Unreliable Entity List, a correction dead - line can be set for foreign entities included in the list of unreliable entities, during which no sanction meas - ures will be taken. Foreign entities could be removed from the list of unreliable entities if they correct their behaviours and take measures to eliminate the con - sequences within the correction period. 2.3.2 Provision of Legal Services There is no general licence for the provision of legal services to designated persons currently under sanc - tions law in China. However, according to the Provi - sions on the Unreliable Entity List, during the investi - gation conducted by the working mechanism, foreign entities may make statements and defend themselves. 2.4 Reporting At present, there are no explicit reporting obligations with regards to sanctions violations under sanctions law in China. However, citizens and organisations shall report activities endangering China’s national sover - eignty, security, and development interests stipulated in the Provisions on the Unreliable Entity List since they have the obligation to report clues in a timely manner that endanger national security activities to the state security organisation according to the National Secu - rity Law of the People’s Republic of China. According to the Provisions on the Unreliable Entity List, the working mechanism shall decide whether or not to investigate the acts of relevant foreign entities according to its functions and powers or the sugges - tions or reports from relevant parties.
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