CHINA Law and Practice Contributed by: Xing Nan (Nancy), AnJie Broad Law Firm
The Ministry of Commerce, the Ministry of Industry and Information Technology, the General Administra - tion of Customs, and the State Cryptography Admin - istration published the Dual-Use Export Control List of the People’s Republic of China. China implements sanctions mandated by the UN Security Council towards the Islamic State and Al- Qaeda, Yemen, Iraq, the Democratic Republic of Con - go, South Sudan, Libya, Mali, Haitian gangs, Central Africa, and Al-Shabaab in Somalia. 5.2 Goods China’s export and import control regimes are current - ly not country-specific. The Ministry of Commerce, the General Administration of Customs, and the Ministry of Ecology and Environment, in accordance with rel - evant laws and regulations, regularly issue the Cata - logue of Prohibited Import Goods and the Catalogue of Prohibited Export Goods. The Ministry of Commerce, the Ministry of Industry and Information Technology, the General Administra - tion of Customs, and the State Cryptography Admin - istration published the Dual-Use Export Control List of the People’s Republic of China. China implements sanctions mandated by the UN Security Council towards the Islamic State and Al- Qaeda, Yemen, Iraq, the Democratic Republic of Con - go, South Sudan, Libya, Mali, Haitian gangs, Central Africa, and Al-Shabaab in Somalia. 6. Civil Litigation and Arbitration 6.1 Force Majeure In judicial practice, PRC courts tend to evaluate whether sanctions constitute force majeure. That is to say, courts tend to evaluate whether the obstacles cannot be reasonably foreseen at the time of contract formation and the consequences of obstacles cannot be reasonably avoided or overcome by the affected parties. If they do not constitute force majeure, the judgment should be executed accordingly. If the judg - ment or ruling is not voluntarily complied with, the court may take measures to enforce its decision.
If the property of the person subject to enforcement within China has been pre-sealed, seized, or frozen by relevant Chinese departments in accordance with sanctions laws, and no property available for enforce - ment has been found through property investigation, the enforcement procedure may be terminated after the applicant for enforcement signs confirmation or the enforcement court forms a collegial panel to review and verify, and is approved by the President. After the termination of enforcement, if the applicant for enforcement discovers that the enforcee has prop - erty available for enforcement, they may apply for In a case regarding a sales contract dispute, the sell - er, Company A, signed a procurement contract with the buyer, Company B, and Company A promised in Annex 3 that the goods did not come from Iran. After - wards, Company B refused to make payment since Company A was unable to provide proof, while Com - pany A filed a lawsuit claiming that Annex 3 violated the Law of the People’s Republic of China on Counter - ing Foreign Sanctions and the Rules on Counteract - ing Unjustified Extra-Territorial Application of Foreign Legislation and Other Measures, violated mandatory provisions of laws and administrative regulations, and should be deemed invalid. enforcement again. 6.2 Enforcement Case 1 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 Law of the People’s Republic of China on Countering Foreign Sanctions and the Rules on Counteracting Unjustified Extra-Ter - ritorial 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 con - stituted a breach of contract. Case 2 In a case regarding an application for the recognition and enforcement of foreign arbitral awards, Company
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