Premier Li signed a decree of the State Council to publish a new set of rules on countering foreign states’ unlawful extraterritorial jurisdiction measures. These new regulations on countering foreign extraterritorial jurisdiction go well beyond general principles. Articles 5 and 6 lay out a concrete institutional mechanism that makes Beijing’s blocking framework significantly more operational than anything that existed under the 2021 Anti-Foreign Sanctions Law alone. The regulations establish a formal interagency “working mechanism” to coordinate responses to what Beijing terms “improper” foreign extraterritorial jurisdiction. The State Council’s rule-of-law department is tasked with leading the identification process, with authority to investigate, consult externally, and publicly designate specific foreign measures as improper. The criteria for identification are broad and politically flexible, covering violations of international law, insufficient nexus between the regulated conduct and the foreign state, and harm to China’s sovereignty, security, development interests, or the rights of Chinese citizens and organizations. The most challenging provision may be the blanket prohibition on implementing or assisting in implementing designated foreign measures, combined with an exemption application process. Chinese citizens and organizations that need to comply with a foreign measure for “special circumstances” must apply to the State Council’s rule-of-law department, provide justification, and receive approval through the working mechanism before doing so. This seems to mean that once Beijing designates a foreign measure, compliance becomes illegal absent government permission.
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