Measures to Block the Improper Extraterritorial Application of Foreign Laws and Measures

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Promulgation Date: 2021-1-9
Title: Measures to Block the Improper Extraterritorial Application of Foreign Laws and Measures
Document Number:商务部令2021年第1号
Expiration date: 
Promulgating Entities:Ministry of Commerce
Source of text: http://www.mofcom.gov.cn/article/zwgk/zcfb/202101/20210103029710.shtml

Article 1: These Measures are formulated on the basis of the "National Security Law of the PRC" and other relevant laws, so as to block the impact on China caused by the improper extraterritorial application of foreign laws and measures, to preserve national sovereignty, security and development interests, and to protect the lawful rights and interests of Chinese citizens, legal persons, and other organizations.

Article 2: These Rules apply to situations of foreign laws and other measures being applied extraterritorially contrary to international law and the basic norms of international relations, improperly prohibiting or restricting Chinese citizens, legal persons, or other organizations from conducting normal economic, trade, and related activities with a third nation (or region) or its citizens, legal persons, or other organizations.

Article 3: The Chinese Government persists in an independent and autonomous foreign policy, upholding the basic norms of international relations such as mutual respect for sovereignty, non-interference in internal affairs, and equality and mutual benefit; it abides by the international treaties and agreements it has concluded and performs the international obligations it has undertaken.

Article 4: The State is to establish a working mechanism joined by the relevant departments of the central state organs (hereinafter the “working mechanism”), responsible for responding to the improper extraterritorial application of foreign laws and measures. The State Council department in charge of commerce is to lead the working mechanism, and specific matters are to be handled by the department for commerce and the department for development and reform in conjunction with other relevant departments.

Article 5: Where Chinese citizens, legal persons, or other organizations are prohibited or restricted by foreign laws or measures from conducting normal economic, trade, and related activities with a third country (or region) or its citizens, legal persons, or other organizations, they shall truthfully report the relevant circumstance to the State Council departments for commerce within 30 days. Where those making the report request confidentiality, the State Council departments for commerce and it's staff shall maintain confidentiality.

Article 6: The working mechanism is to assess and determine whether foreign laws and measures are improperly applied extraterritorially by a comprehensive consideration and appraisal of the following factors:

(1) Whether they are contrary to international law and basic norms of international relations;

(2) The potential impact on China's national sovereignty, security, and development interests;

(3) The potential impact on the lawful rights and interests of Chinese citizens, legal persons, or other organizations;

(4) Other factors that need to be considered.

Article 7: Where through assessment the working mechanism confirms the existence of the unjustified extraterritorial application of foreign laws or other measures, it may make a decision to have the State Council departments for commerce issue a prohibition order saying that the relevant foreign laws and other measures must not be recognized, enforced, or complied with. (hereinafter simply “a prohibition order”).

The working mechanism may make a decision to suspend or withdraw a prohibition order based on the actual circumstances.

Article 8: Chinese citizens, legal persons, and other organizations may apply to the State Council departments for commerce to be exempted from compliance with a prohibition order.

Where applying for exemption from compliance with a prohibition order, applicants shall submit a written application to the State Council departments for commerce, and the written application shall include the reasons for requesting the exemption, the scope of exemption requested, and other such content. The State Council shall make a decision on whether to approve an application within 30 days of having received it; but where the circumstances are urgent, a prompt decision shall be made.

Article 9: Where parties comply with foreign laws and measures that are within the scope of prohibition orders, infringing on the lawful rights and interests of Chinese citizens, legal persons, or other organizations; the citizens, legal persons, or other organizations may initiate litigation in the people's courts in accordance with law, to request that the party compensate their loses; except for where the parties have obtained an exemption as provided for in Article 8 of these Measures.

Where a judgment or ruling made on the basis of foreign laws within the scope of a prohibition order causes losses to Chinese citizens, legal persons, or other organizations, the citizens, legal persons, or other organizations may initiate litigation in the people's courts in accordance with law, requesting compensation for losses from the parties benefiting from that judgment or ruling.

Where the parties provided for in the first and second paragraphs of this article refuse to perform on an effective judgment or ruling of a people's court, the citizens, lawful persons, or other organizations may request that the people's courts compel enforcement in accordance with law.

Article 10: In accordance with their respective duties, the unit members of the working mechanism shall provide guidance and services for Chinese citizens, legal persons, and other organizations in response to improper extraterritorial applications of foreign laws or measures.

Article 11: Where Chinese citizens, legal persons, or other organizations suffer major losses as a result of not complying with foreign laws or measures on the basis of a prohibition order, the relevant government departments may give necessary support based on the specific circumstances.

Article 12: The Chinese government may employ necessary countermeasures against the improper extraterritorial application of foreign laws or measures based on the actual circumstances and need.

Article 13: Where Chinese citizens, legal persons, or other organizations fail to truthfully report relevant circumstances as provided or do not comply with prohibition orders, the State Council departments for commerce may give warnings and order corrections be made in a set period of time, and may give a fine based on the seriousness of the circumstances.

Article 14: Where the staff of the State Council departments for commerce fail to preserve Chinese citizens', legal persons', or other organizations' confidentiality as provided, sanctions are to be given in accordance with law; where a crime is constituted, criminal responsibility is to be pursued in accordance with law.

Article 15: These Measures do not apply to the extraterritorial application of foreign laws and measures provided for in international treaties and agreements concluded or participated in by the PRC.

Article 16: These Measures take effect beginning on the date of their promulgation.

 

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