Anti-Foreign Sanctions Law (China, 2021)

China's Anti-Foreign Sanctions Law is a national statute, in force from 10 June 2021, that authorises countermeasures against persons and organisations involved in specified foreign restrictive measures. It combines listing powers, asset and transaction restrictions, duties to implement Chinese countermeasures and a civil remedy addressing compliance with discriminatory foreign measures. It does not make every act of foreign-sanctions compliance a criminal offence.

Statutory structure

Articles 3 and 4 connect the law to foreign measures described as discriminatory and as interfering in China's internal affairs. Relevant State Council departments may place directly or indirectly involved persons and organisations on a countermeasure list. Article 5 allows specified associates and related entities to be covered.

Article 6 authorises measures including visa denial or cancellation and expulsion, sealing, seizure or freezing of property within China, restrictions on transactions or cooperation with organisations and individuals in China, and other necessary measures. Scope and effect therefore depend on the implementing decision. A listing is not identical to a criminal conviction or a general prohibition on all dealings.

Article 11 requires organisations and individuals in China to implement countermeasures. Article 12 states that no organisation or individual may implement or assist discriminatory restrictive measures adopted by a foreign state against Chinese citizens or organisations. It also allows an affected Chinese party to seek an order stopping the infringement and compensation for loss. This is an express civil cause of action. Any administrative or other consequence must be tied to its own provision and authority.

Adjacent and implementing regimes

The Ministry of Commerce's 2021 Blocking Rules are a distinct administrative regime for unjustified extraterritorial application of foreign laws and measures. They provide a reporting and prohibition-order mechanism. They should not be collapsed into the Anti-Foreign Sanctions Law merely because both address external economic pressure.

State Council Decree 803, promulgated and effective on 23 March 2025, set implementing provisions for the Anti-Foreign Sanctions Law, including asset forms and departmental responsibilities. State Council Decree 835, promulgated on 7 April 2026 and effective upon publication, created separate provisions on countering unjustified extraterritorial application. It is not an amendment to the 2021 statute.

Departmental measures remain measure-specific. Foreign Ministry Decree 19 and a Ministry of Commerce blocking order of 2 May 2026 illustrate different legal routes. Their existence does not establish a general enforcement count or prove the outcome of private litigation.

Territorial and strategic effect

The law creates a compliance dilemma where a foreign requirement commands conduct that Chinese law or a Chinese order restricts. Firms may respond through legal challenge, licensing, ring-fencing, restructuring or exit. Whether this produces mutual deterrence is an analytical interpretation, not a statutory fact. The result depends on company exposure, the exact countermeasure and enforcement practice.

The current Hong Kong Basic Law Annex III list did not include the Anti-Foreign Sanctions Law when checked on 29 July 2026. This establishes current formal non-inclusion only. It does not establish a political reason for earlier deliberations. The statute, implementing provisions, departmental decisions and Annex III status all require publication-day revalidation.

See also

Economic statecraft · Anti-sanctions architecture · Compliance dilemma · MOFCOM Blocking Rules (Order No. 1 of 2021) · Blocking statutes · China (People's Republic)

Sources

1. Standing Committee of the National People's Congress, Anti-Foreign Sanctions Law of the People's Republic of China, 10 June 2021.
2. Ministry of Commerce of the People's Republic of China, Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures, Order No. 1 of 2021.
3. State Council of the People's Republic of China, Decree 803 official record, 23 March 2025, and English summary, 25 March 2025.
4. State Council of the People's Republic of China, Decree 835 official record, 7 April 2026, and English summary, 13 April 2026.
5. Ministry of Foreign Affairs of the People's Republic of China, Decree 19, 26 December 2025.
6. Ministry of Commerce of the People's Republic of China, blocking order, 2 May 2026.
7. Hong Kong Special Administrative Region, Basic Law Annex III, checked 29 July 2026.