Tuesday, June 22, 2021

Foreign companies must act in accordance with Beijing’s new law

China has adopted a new law ordering all individuals and businesses in China to apply sanctions imposed by the regime against foreign counterparts, but they do not have to comply with foreign restrictions.

In addition, the law came into effect on June 10, when the legislature of the rubber stamp approved it without a third reading, which is a prerequisite under China’s legislation.

‘The content of the law is very bad in my eyes. It orders foreign nationals to act against their own homelands and to be loyal to the Chinese Communist Party [CCP]”Tang Jingyuan, an American commentator in China, said in a telephone interview with The Epoch Times on Thursday.

‘The timing is important. The CCP approved the law after President Joe Biden began his European tour. Biden will speak to European leaders about the investigation into the origin of the CCP virus, which probably leaked from the Wuhan laboratory, ‘Li Hengqing, a scholar at the Washington Institute for Information and Strategy, told The June 10 Epoch Times said.

Li believes that the CCP virus, commonly known as new coronavirus, leaked from the Wuhan Institute of Virology. Once this fact is confirmed by the world, other countries will hold the CCP regime accountable, Li said.

New law

The Chinese legislature with rubber stamps passed and released the “Combating Foreign Sanctions Act” on 10 June.

The law requires all individuals and organizations in China, regardless of their citizenship or registered status, to carry out the sanctions imposed by the Beijing government.

Furthermore, clause 12 of the Act provides: “No organization or individual may enforce or assist the discriminatory restrictive measures applied abroad against Chinese citizens and organizations… Chinese citizens or organizations may institute proceedings against foreign entities. [who are complying with foreign-imposed sanctions], and ask them to stop the offense and pay compensation for it [Chinese] losses.”

Epoch Times Photo
Buick Excelles will be unveiled on May 28, 2005 during the opening ceremony of the Jinqiao South Vehicle Plant of Shanghai General Motors Corp. in Shanghai, China. (China Photos / Getty Images)


In retaliation for sanctions imposed by foreign countries, the law is aimed at foreign offenders and their immediate family members, company managers and directors, as well as other related individuals and organizations.

Penalties for offenses under the new law include refusal or revocation of visas, seizure of property and assets and the prohibition of trading activities.

“This year, China has instituted similar countermeasures against entities and individuals from relevant countries, as opposed to Western hegemony and power politics,” says Wang Wenbin, spokesman for the Chinese Foreign Ministry, in a June 10 newsletter.

Wang clearly said that the law is a legal tool to retaliate against foreign sanctions.

Asked if the law would affect diplomatic relations with other countries, Wang said: “This concern is completely unnecessary.”

In recent months, the United States, the European Union, Canada and the United Kingdom have imposed sanctions on Chinese officials, accusing them of serious human rights violations against Uyghurs in Xinjiang and the destruction of autonomy in Hong Kong.

On May 12, the US government announced sanctions against an CCP official for prosecuting Falun Gong as the brutal repression of the Beijing regime’s spiritual practice nears its 22nd year of existence.

So far, the U.S. government has imposed sanctions on about 45 Chinese officials, including all 14 vice-chairmen of the standing committee of the rubber stamp legislature. Meanwhile, Washington has also blacklisted Chinese companies to buy US technology, such as China’s largest telecommunications maker Huawei, which violates US sanctions against Iran.

The Chinese regime began retaliating earlier this year. On January 21, the regime banned 28 Americans and their immediate family from visiting mainland China and Hong Kong.

Chinese leader Xi Jinping (second row C) and lawmakers stand for the national anthem at the closing session of the rubber stamp legislation conference at the Great Hall of the People in Beijing, China, on March 11, 2021. (Kevin Frayer / Getty Images)


‘The recently introduced law on anti-foreign sanctions is a comprehensive retaliation against the United States and other developed countries. “It covers all individuals and organizations and threatens to seize their property if they do not listen to the Beijing regime,” Tang told The Epoch Times.

Tang is worried that the CCP will require foreign companies to buy forced labor products, such as buying cotton from Xinjiang; and sells U.S. technology to Chinese companies, such as selling semiconductor chips to Huawei.

‘I see the risks this law poses to society. I can imagine that foreign companies will have to leave the Chinese market before the CCP forces them to do things [against U.S. sanctions], and Chinese companies are being forced to stop buying imported technology, ”Tang said.

Tang uses China’s most advanced, largest and state-owned chipmaker Semiconductor Manufacturing International Corporation (SMIC) as an example.

On September 15, 2020, SMIC told the Chinese government Securities Times that it stopped supplying chips to Huawei because SMIC used American technology to make its chips and Huawei was blacklisted to buy any American technology.

“According to the law on China against foreign sanctions, SMIC has no choice but to supply chips to Huawei. “Once SMIC sells chips to Huawei, it violates US law and loses its right to use US technology as well as its global market,” Tang said.

For foreign companies, their situations are worse than SMIC. “They will lose all their assets and other possessions in China if they do not comply with the Beijing regime’s law,” Tang added.

Luo Ya contributed to this report.


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