China’s defense against secondary sanctions: lessons from the EU blocking statute
Journal of International Trade Law and Policy
ISSN: 1477-0024
Article publication date: 8 April 2022
Issue publication date: 19 October 2022
Abstract
Purpose
With the rise of geopolitical tensions among the leading state actors, the Chinese citizens and companies are increasingly targeted by the unilateral restrictive measures. These frequently include the so-called secondary sanctions, i.e. penalties imposed on third parties for failing to comply with the sanctions regime, the US practice being a prominent example. The purpose of this paper is to analyze China's legal instruments related to imposition of and protection from unilateral restrictive measures of third countries.
Design/methodology/approach
The present paper discusses China’s legal defenses counteracting the extraterritorial sanctions by comparison with the legislative and enforcement practices of the EU, which has accumulated substantial experience trying to shield its businesses from the US secondary sanctions. The paper identifies the differences between the two anti-sanctions regimes and highlights the key factors that will affect the future enforcement of blocking rules in China.
Findings
When designing its anti-foreign sanctions legislation, China has considered similar legislation adopted by other jurisdictions, most notably – the EU blocking statute. The comparative assessment of the two blocking regimes reveals substantial similarities in legislative and procedural standards with important differences in enforcement capabilities and institutional frameworks.
Originality/value
The paper represents one of the first attempts to anticipate the directions in enforcement of China's blocking legislation taking into account the EU experiences in this domain.
Keywords
Acknowledgements
The author acknowledges the support from the Specialized Subsidy Scheme for Macao Higher Education Institutions in the Area of Research in Humanities and Social Sciences of Higher Education Fund for the research project HSS-UMAC-2020-17.
Citation
Svetlicinii, A. (2022), "China’s defense against secondary sanctions: lessons from the EU blocking statute", Journal of International Trade Law and Policy, Vol. 21 No. 3, pp. 217-239. https://doi.org/10.1108/JITLP-09-2021-0048
Publisher
:Emerald Publishing Limited
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