‘Unjustified’ Foreign Trade And Business Regulations To Be Countered By China

With the deteriorating relations between the United States and China, a set of new rules for countering “unjustified” laws and restrictions imposed in foreign countries on Chinese companies and citizens has been published by China’s Ministry of Commerce during the weekend.

The department’s website carried the published rules on “unjustified extra-territorial application of foreign legislation” and assessment of the legal implications of such incidents was to me be made through a “working mechanism”.

Any Chinese citizen or a company who faces restrictions because of a legislation in a foreing country barring them from “engaging in normal economic, trade and related activity with a third State or its citizens” will be allowed to report such incidents to the commerce department within a period of 30 days, under the notice published on the department’s website.

An assessment will then be made by the Chinese commerce department of the potential involvement of any violation of any international law, the impact of the legislation on China’s sovereignty and national security, and the impact of such incidents on Chinese citizens.

The notice says that “relevant government departments may provide necessary support” when a citizen or any other Chinese organisation “suffers significant losses” because of non-compliance with foreign legislation. It also says that “necessary counter-measures” in response may also be enacted by the Chinese government.

In recent times, there has been a backlash against various Chinese companies by multiple foreign governments – most notably from the United States, which forms the backdrop of the new rules.

Severe restrictions on the Chinese telecom equipment making giant Huawei Technologies Co Ltd were imposed by the Trump administration of the United States citing threat to its national security. The restrictions essentially barred the Chinese firm from accessing critical components such as American made superconductors which has had a severe impact on the smartphone business of the company.

The trump administration has also come down hard over the Chinese social media giant ByteDance after efforts by the US administration in last autumn to force the Chinese firm to divest the US business division of the company’s popular short video sharing app TikTok.

And in the latest crackdown on Chinese companies that the US considers a threat, three Chinese telecom companies were announced to be delisted by the New York Stock Exchange last week based on a November 2020 executive order of Trump in which these companies were identified ot have close ties with the Chinese military.

this week said it will delist three Chinese telecom companies following an order from U.S. President Donald Trump in November barring U.S. persons from investing in publicly traded companies Washington deems to be tied to the Chinese military.

Contemplations of adding tech giants Alibaba and Tencent to a so called blacklist of Chinese companies that are believed to be owned or controlled by the Chinese military are also being made by the Trump administration, claimed several reports.

(Adapted from EconomicTimes.com)



Categories: Economy & Finance, Regulations & Legal, Strategy, Sustainability

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