Anti-Foreign Sanctions Law (AFSL) is a law of the People's Republic of China. Developed in response to increasing international sanctions targeting PRC officials and entities and passed by the Standing Committee of the National People's Congress on June 10, 2021, on an accelerated basis without public consultation, it establishes a comprehensive legal framework enabling the Chinese government to implement countermeasures against foreign sanctions. [1] [2] [3] [4] [5]
AFSL emerged during a period of heightened tensions between China and Western nations, particularly following sanctions imposed by the United States, European Union, United Kingdom, and Canada over concerns regarding human rights violations in Xinjiang and Hong Kong. Its development followed Xi Jinping's November 2020 call for legal methods to defend PRC "national sovereignty, security, and development interests." [2] [3]
AFSL is part of a broader framework of PRC measures designed to counter foreign restrictions, including the Unreliable Entity List mechanism, [6] Ministry of Commerce blocking statutes, [7] efforts to promote RMB settlement in international trade, and development of alternative international payment systems. [3]
AFSL targets individuals and organizations involved in creating or implementing sanctions against PRC interests, participating in the drafting or decision-making process of such sanctions, or supporting with their implementation. [1] [2] It authorizes denial or cancellation of visas, asset freezes, restrictions on business activities in China, prohibition of transactions with Chinese entities, or other unspecified countermeasures deemed appropriate by authorities. [1] [2]
In December 2024, in response to recent U.S. arms sales to Taiwan, Beijing intended to sanction an executive at Data Link Solutions LLC, a military contracting joint venture, but mistakenly targeted Beth Edler of Data Link Solutions Inc., president of an unrelated Missouri-based company providing data services to telephone directory publishers. [8] [9]
Legal scholars, the international business community, and foreign governments have expressed concerns about AFSL's broad scope and extraterritorial application, lack of appeal mechanisms for sanctioned entities, and impact on global supply chains. [10] [11] [12] [13] [14]
In international law, extraterritoriality or exterritoriality is the state of being exempted from the jurisdiction of local law, usually as the result of diplomatic negotiations.
The Office of Foreign Assets Control (OFAC) is a financial intelligence and enforcement agency of the United States Treasury Department. It administers and enforces economic and trade sanctions in support of U.S. national security and foreign policy objectives. Under presidential national emergency powers, OFAC carries out its activities against foreign governments, organizations, and individuals deemed a threat to U.S. national security.
Extraterritorial jurisdiction (ETJ) is the legal ability of a government to exercise authority beyond its normal boundaries.
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Hangzhou Hikvision Digital Technology Co., Ltd., often shortened to Hikvision, is a Chinese state-owned manufacturer and supplier of video surveillance equipment for civilian and military purposes, headquartered in Hangzhou, Zhejiang. Due to its alleged involvement in mass surveillance of Uyghurs and the Xinjiang internment camps and national security concerns, the company has been placed under sanctions from the U.S. and European governments.
Mass surveillance in the People's Republic of China (PRC) is the network of monitoring systems used by the Chinese central government to monitor Chinese citizens. It is primarily conducted through the government, although corporate surveillance in connection with the Chinese government has been reported to occur. China monitors its citizens through Internet surveillance, camera surveillance, and through other digital technologies. It has become increasingly widespread and grown in sophistication under General Secretary of the Chinese Communist Party (CCP) Xi Jinping's administration.
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Executive Order 13936, entitled "The President’s Executive Order on Hong Kong Normalization", is an executive order signed by U.S. President Donald Trump on July 14, 2020. On the same day Trump had signed into law Hong Kong Autonomy Act, one of the laws from which the order derives authority. The act and the executive order are the U.S. response to the imposition of a controversial national security law in Hong Kong by the Standing Committee of the National People's Congress of China on June 30, 2020, which was described as "an unusual and extraordinary threat [...] to the national security, foreign policy, and economy of the United States" in the preamble.
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The Entity List is a trade restriction list published by the United States Department of Commerce's Bureau of Industry and Security (BIS), consisting of certain foreign persons, entities, or governments. It is published as Supplement 4 of Part 744 of the Code of Federal Regulations. Entities on the Entity List are subject to U.S. license requirements for the export or transfer of specified items, such as some U.S. technologies. However, U.S. persons or companies are not prohibited from purchasing items from a company on the Entity List. Being included on the Entity List is less severe than being designated a "denied person" and more severe than being placed on the Unverified List (UVL).
The Cybersecurity Law of the People's Republic of China, commonly referred to as the Chinese Cybersecurity Law, was enacted by the National People’s Congress with the aim of increasing data protection, data localization, and cybersecurity ostensibly in the interest of national security. The law is part of a wider series of laws passed by the Chinese government in an effort to strengthen national security legislation. Examples of which since 2014 have included the data security law, the national intelligence law, the national security law, laws on counter-terrorism and foreign NGO management, all passed within successive short timeframes of each other.
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