China issues new regulations reinforcing legal countermeasures against foreign sanctions

China issued new regulations on April 7, 2026, to strengthen its legal framework against foreign sanctions and extraterritorial measures. These rules expand countermeasures to include trade restrictions, asset freezes, and a 'Malicious Entity List' targeting entities that promote discriminatory actions harming Chinese interests. They build on the 2021 Anti-Foreign Sanctions Law by formalizing responses to protect supply chains and sovereignty.

The measures signal China's determination to counter perceived foreign bullying and long-arm jurisdiction, potentially affecting multinational firms' compliance decisions. By integrating investigation, monitoring, and retaliation tools under State Council coordination, they aim to balance openness with security amid rising geopolitical tensions. This development underscores China's push for 'lawfare' to safeguard economic interests globally.

Chinese State Media

The new regulations fill gaps in China's legal toolkit to protect industrial supply chains from discriminatory foreign restrictions. They enable targeted countermeasures like trade curbs while promoting international cooperation and openness. Experts view this as a balanced approach linking to existing laws for coherent foreign-related rule of law.

  • The State Council, led by Premier Li Qiang, signed the decree on April 13, 2026.
  • China's 2015 National Security Law underpins the new regulations' authority.
  • The 2023 Foreign Relations Law bolsters China's legal responses to global pressures.
China issues new regulations reinforcing legal countermeasures against foreign sanctions | Implica