Chinese law lays ground to retaliate against sanctions

Significance

It outlines retaliatory measures and details their implementation and implications. It could have a major impact on individuals, organisations and governments that are heavily involved with China.

Impacts

• NGOs and research institutions will face greater barriers to operating in China, hiring Chinese staff and working with Chinese counterparts.
• Businesses potentially face a choice between breaking the law in China or in the foreign country that imposed sanctions.
• Unlike most mainland Chinese laws, this one looks likely to be adopted in Hong Kong too, creating risks for foreign businesses there.
• Hong Kong and Xinjiang are the most likely focus of sanctions and counter-sanctions.
• Officials in Western capitals can expect increased lobbying from digital technology firms for a more moderate approach to China.