China introduces new rules to enforce its anti-foreign sanction laws

Chinese Premier Li Qiang has signed a decree for new anti-foreign sanctions laws (AFSL), set to take effect Monday, strengthening countermeasures.

More countermeasures, more transparent processes, and more departmental collaboration are all outlined in the law. As part of its anti-foreign sanctions statute, it permits China to confiscate, freeze, or prohibit a range of assets, transactions, and activities.

According to the regulation, China shall enhance coordination between State Council departments and improve countermeasure procedures. Authorities will strictly enforce these controls, limiting specific activities if needed and demanding adjustments if improperly implemented.

If impacted organizations and individuals adopt corrective measures and lessen the impact of their infractions, they can ask for sanctions to be changed or removed.

China: Anti-Foreign Sanction Laws

Chinese authorities intend these enforcement rules to “protect national sovereignty, security, and development interests.”

Moreover, the regulations further empower local courts to punish companies that aid or implement international sanctions against Chinese corporations.

Article 6(2) lays out what kinds of assets can be seized, frozen, or detained. This includes cash, negotiable instruments, bank deposits, securities, fund shares, equity, intellectual property, accounts receivable, and other forms of property.

Article 6(3) details the types of transactions, collaborations, and activities that may be restricted or prohibited. These restrictions extend beyond business and trade to include areas like education, science and technology, legal services, environmental protection, culture, tourism, health, and sports.

Article 6(4) explains what “other necessary measures” might entail. These can include banning or limiting imports and exports related to China, restricting investment in the country, prohibiting the sale of certain items, and blocking access to data or personal information. It can also mean revoking or restricting work permits, stay, or residency rights for relevant personnel, as well as imposing fines.

What do China’s anti-foreign sanction laws (AFSL) refer to?

The People’s Republic of China passed the Anti-Foreign Penalties Law (AFSL) as a legislative tool to combat international penalties on Chinese individuals and companies.

The law, which was approved by the National People’s Congress Standing Committee on June 10, 2021, establishes a legal basis for taking retaliatory action against foreigners and groups who engage in activities that are considered discriminatory or harmful to China’s interests.

Growing international penalties against Chinese officials and entities prompted the creation of the AFSL. By giving the Chinese government legal justification to take action in response to international sanctions, it primarily seeks to protect China’s sovereignty, security, and development interests.

Chinese Premier Li Qiang signed an order on March 24, 2025, to enact new regulations that strengthen China’s defenses against international sanctions. By identifying industries including trade, science, education, and legal services that may be subject to limitations, these regulations aid the AFSL.

In order to improve China’s capacity to react to discriminatory actions taken by other countries, the regulations, therefore, include enforcement measures. Specifically, they impose prohibitions on import and export operations.

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