How China Is Trying to Fight Back Against Sanctions

China has created new legal tools to retaliate against sanctions imposed by the U.S. and some of its allies over issues ranging from human rights to national security. This arsenal could put global firms in the cross-hairs of a conflict between the world’s two largest economies. So far, however, China has shown a desire to avoid escalation.

An anti-foreign sanctions law passed in June gives the Chinese government broad powers to seize assets from, and deny visas to, those who formulate or implement sanctions. It also empowers individuals and companies to sue “individuals and organizations” in Chinese courts seeking compensation for losses that result from “discriminatory restrictive measures.” China was said to be moving to make clear that the law applies to its semi-autonomous regions of Hong Kong and Macau as well. Earlier measures included new rules from the Ministry of Commerce to counter “unjustified extra-territorial application” of foreign laws, and an “unreliable entities list” targeting foreign companies.