The Blocking Rules do not provide a list of specific foreign laws subject to blocking. The Blocking Rules apply to situations where the extra-territorial application of foreign legislation and measures unjustifiably prohibits or restricts Chinese parties from engaging in normal economic, trade and related activities with parties of a third country or region. An official English translation of the Blocking Rules is available here. In brief, the Blocking Rules seek to block the extra-territorial application of third-country legislation or measures that adversely affect China, if there is no justification for extra-territorial legislation to apply. The Blocking Rules further add to these countermeasures. In response, it has taken various counteractions, including launching an Unreliable Entity List (see our November 2020 article) and certain provisions in its revamped Export Control Law (see our January 2021) article. An example is the US secondary sanctions against Iran which, together with relevant US export controls, have been aggressively enforced against Chinese companies, such as ZTE (see our March 2017 and May 2017 articles).Ĭhina views these measures as encroaching on its sovereignty and as an attempt to stifle its development. Some US export control and sanctions measures also restrict China itself from engaging in certain business with targeted countries and parties. These measures restrict US and (as a result of their extra-territorial applicability) non-US parties from engaging in certain business with China.
The tensions between the US and China have escalated in the past few years, with China increasingly becoming the target of US export control and sanctions measures.
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