New Extraterritorial Jurisdiction Measures

On January 9, 2021, the Ministry of Commerce released the Measures for Blocking Improper Extraterritorial Application of Foreign Laws and Measures (“Measures”), with immediate effect. The Measures state that Chinese citizens, legal entities, and organizations must report to the competent authority in China, any inappropriate application of foreign measures or laws that are designed to bar economic, trade, and related activities between China and other countries. The competent authority has the power to issue an injunction allowing the reporter not to recognize, implement, or comply with the said foreign norms, as well as to file a lawsuit in China claiming for losses’ compensation.

• Type:

  • Treatment and operation (Operational conditions)

• Industry:

  • Not industry specific

• Sources:

  • Ministry of Commerce, MOFCOM Order No. 1 of 2021 on Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures, http://english.mofcom.gov.cn/article/policyrelease/announcement/202101/20210103029708.shtml, 09 Jan 2021
  • China Briefing, China Promulgates New Extraterritorial Jurisdiction Measures, https://www.china-briefing.com/news/china-promulgates-new-extraterritorial-jurisdiction-measures/, 08 Feb 2021
  • Reuters, China to counter 'unjustified' foreign trade and business laws, https://www.reuters.com/article/us-china-law/china-to-counter-unjustified-foreign-trade-and-business-laws-idUSKBN29E07Y, 09 Jan 2021