CHINA Trends and Developments Contributed by: Xing Nan (Nancy), AnJie Broad Law Firm
ii) Assessment The Chinese government may assess improper extra - territorial jurisdiction measures implemented by rel - evant countries, determine risk level, and take coun - termeasures and restrictive measures in accordance with the law in areas such as diplomacy, entry and exit, trade, investment, international cooperation, and foreign aid. iii) Countermeasures and restrictive measures In accordance with their working mechanisms and decision-making procedures, relevant departments of the State Council of China may include foreign organi - sations and individuals that promote or participate in the implementation of improper extraterritorial juris - diction measures by foreign entities on the malicious entity list. In accordance with the Anti-Foreign Sanc - tions Law of the People’s Republic of China and the Provisions on the Implementation of the Anti-Foreign Sanctions Law of the People’s Republic of China, they may decide upon one or more of the following coun - termeasures and restrictive measures: • denial of visas, prohibition of entry, cancellation of visas, or required departure from the country within a specified period; deportation or expulsion; • cancellation or restriction of the relevant person - nel’s qualifications to work, stay, or reside in China; • seizing, detainment or freezing of the individual’s movable property, immovable property, and other types of property in China; • prohibition or restriction of organisations and indi - viduals in China from providing the individuals with data or personal information, or from conducting related transactions, cooperation, or other activi - ties; • prohibition or restriction of import or export activi - ties related to China; • prohibition or restriction of investment in China; • prohibition or restriction of entry of their products,
in the establishment or operation of organisations listed in the Malicious Entities List. Suspension , modification , or cancellation of countermeasures and restrictive measures Organisations or individuals subject to countermeas - ures and restrictive measures may apply to the rel - evant department of the State Council that made the decision to impose such measures for suspension, modification, or cancellation of the relevant coun - termeasures and restrictive measures. When apply - ing, they must provide facts and reasons regarding the rectification of their conduct and the measures taken to eliminate the consequences of such. The rel - evant department of the State Council that made the decision to impose countermeasures and restrictive measures may, based on the actual situation, organise an assessment of the implementation and effective - ness of the countermeasures and restrictive meas - ures. Based on the assessment results or the review of relevant applications, the relevant department of the State Council that made the decision to impose countermeasures and restrictive measures may, in accordance with the working mechanism and deci - sion-making procedures, decide to suspend, modify, or cancel the relevant countermeasures and restrictive measures and issue a public announcement. Regulations of the State Council on outward investment These regulations were issued by the State Council of the People’s Republic of China on 5 May 2026, to take effect on 1 July 2026. Scope of application These regulations apply to outward investment by investors within the territory of the People’s Republic of China. Outward investment, also known as over - seas investment, refers to activities in which investors directly or indirectly acquire ownership, control, man - agement rights, and other related rights of enterprises and assets in other countries (regions) by contributing assets, equity, or providing financing, guarantees, etc. Investors include enterprises, other organisations, and resident individuals within China.
means of transport, etc.; • imposition of fines; and
• other necessary measures. The measures stipulat - ed in the preceding paragraph may also be applied to organisations actually controlled or participating
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