CHINA Law and Practice Contributed by: Xing Nan (Nancy), AnJie Broad Law Firm
provisions of laws and administrative regulations, and should be deemed invalid. The court found that the statement was a unilateral commitment issued by Company A to Company B which should be considered as a true expression of Company A’s intention. Secondly, the main content of this document was that Company A promised that the goods did not come from Iran, and therefore did not fall within the scope of the Anti-Foreign Sanctions Law of the People’s Republic of China and the Rules on Counteracting Unjustified Extra-Territorial Application of Foreign Legislation and Other Measures. Therefore, Company A’s inability to provide relevant supporting documents to prove to Company B the source of the goods involved in the case constituted a breach of contract. Case 2 In a case regarding an application for the recognition and enforcement of foreign arbitral awards, Company C applied to the court for recognition and enforcement of an arbitration award made by the Singapore Inter - national Arbitration Centre Arbitration Tribunal. The respondent, Company D, requested that the court not recognise and enforce the arbitration award because the law firm to which the chief arbitrator belonged had been sanctioned by the Chinese government, result - ing in the arbitration award being unfair. Regarding the issue of whether the sanctions imposed by the Chinese government on the law firm to which the arbitrator belonged would affect the hearing of this case, the court believed that the sanctions were aimed at the law firm to which the chief arbitrator belonged and not at its arbitrator’s identity. This sanction was not within the scope of non-recognition as stipulated in the Convention on the Recognition and Enforce - ment of Foreign Arbitral Awards, was not related to the trial of this case, and there was no improper procedure. The issue of whether the recognition and enforcement of arbitration awards complied with the Rules on Counteracting Unjustified Extra-Territorial Application of Foreign Legislation and Other Meas - ures was also not related to this case, and the choice of arbitration was the result of the autonomy of the parties in this case.
The court ultimately held that the award made by the Singapore International Arbitration Centre in question did not fall under the circumstances of non-recognition and enforcement under Article 5 of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, and should be recognised and enforced. Summary In conclusion, PRC courts tend to respect the autono - my of the contracting parties regarding the agreement of sanctions or export control terms on the condition that sanctions or export control terms do not fall within the jurisdiction of the PRC sanctions laws, including but not limited to the Anti-Foreign Sanctions Law of the People’s Republic of China, the Rules on Counter - acting Unjustified Extra-Territorial Application of For - eign Legislation and Other Measures, and the Export Control Law of the People’s Republic of China. According to the Provisions on the Unreliable Entity List, China has established a working mechanism with the participation of relevant departments of central state organs, responsible for organising and imple - menting the unreliable entity list system. The Office of the Working Mechanism is located in the competent commerce department of the State Council. According to the Anti-Foreign Sanctions Law of the People’s Republic of China, the relevant departments of the State Council may decide to include individuals or organisations who directly or indirectly participate in the formulation, decision-making, and implementation of discriminatory restrictive measures as stipulated by this law in the list of countermeasures. The determina - tion, suspension, modification or cancellation of the list of countermeasures, as well as countermeasures themselves, shall be announced by an order issued by the Ministry of Foreign Affairs or other relevant depart - 7. Designation, Compliance and Circumvention 7.1 Executive Body
ments of the State Council. 7.2 Scope of Designation
There are similar provisions in China specifying the indirect designation of persons as a result of them
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