BEIJING, May 7 (Xinhua) -- China on Wednesday reaffirmed its opposition to what it calls the improper extra-territorial application of foreign laws, as the Chinese government opposes illicit unilateral sanctions that have no basis in international law or authorization of the UN Security Council.
Foreign Ministry spokesperson Lin Jian said that China will keep a close eye on the unjustified extra-territorial application of foreign legislation and measures by relevant countries, and will firmly safeguard the legitimate rights and interests of Chinese citizens and companies in accordance with the law.
The remarks came after China's Ministry of Commerce issued a blocking ban on May 2 under the Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures. The ban prohibits any recognition, enforcement, or compliance with U.S. sanctions imposed on five Chinese companies on the grounds of their alleged involvement in Iranian petroleum transactions.
Experts say the blocking ban rests on firm foundations in both domestic law and international legal principles.
Li Qingming, a researcher with the Institute of International Law, Chinese Academy of Social Sciences, described the measure as a rational and professional act of defending national sovereignty and the legitimate rights of enterprises, grounded in the basic principles of international law.
The blocking ban also draws on international precedent, Li noted. The European Union enacted a blocking statute as early as 1996. Canada and Mexico have adopted similar legislation.
"China's blocking rules are fully consistent with these instruments in their legal foundation, reflecting a broad international consensus against unjustified extra-territorial sanctions," Li said.
China's clear and forceful legal response aims to restore the legal order disrupted by illicit conduct, demonstrating a rule-of-law approach befitting a responsible major country, Li added.
Ji Wenhua, a law professor at the University of International Business and Economics, noted that the blocking rules set out a core obligation -- not to recognize, not to enforce, not to comply -- while also providing supporting institutional arrangements for enterprises, striking a balance between safeguarding national interests and allowing market entities to operate with flexibility.
The ban is confined to blocking the legal effect of the relevant sanctions within Chinese territory, and does not involve more drastic countermeasures. "This approach of precise counteraction helps contain differences and preserves space for resolving disputes through dialogue," he wrote in an Economic Daily article.
In recent years, China has developed a systematic legal toolbox to counter sanctions, interference and unjustified extra-territorial jurisdiction, including the Anti-Foreign Sanctions Law, provisions on the unreliable entity list, and rules on countering foreign states' unlawful extra-territorial jurisdiction measures. The tools provide a solid institutional foundation for responding to unjustified external measures in accordance with the law.
China's application of the blocking rules on this occasion, Ji wrote, is an important exercise in balancing openness with security, and development with the rule of law, in a complex international environment. It sends a clear signal to the international community of China's firm opposition to unilateral sanctions and unjustified extra-territorial jurisdiction, and serves to uphold the UN-centered international system and the rules-based multilateral trading system. ■
