China unveiled a set of rules seemingly designed to counter sanctions from the US which ceased US investment into Chinese companies, which directly affected China’s largest operators and saw them lined up to be removed from the New York Stock Exchange.
China’s Ministry of Commerce said in a statement, the rules countered “unjustified extra-territorial application of foreign legislation”, and it will assess the legal ramifications of such incidents.
The department welcomes reports from Chinese citizens and companies that are restricted by foreign legislation from “engaging in normal economic, trade and related activity with a third State or its citizens,” within 30 days.
If a company or citizen “suffers significant losses” by not complying with foreign laws, “relevant government departments may provide necessary support”.
Although the US was not mentioned in the statement, recently President Donald Trump issued an executive order demanding US companies cease investment into Chinese firms deemed involved with the Chinese military, a threat to national security the administration stated.
This is the latest in the running of tensions between China and the US. Last year the US imposed restrictions on vendor Huawei stating the telecoms company is a threat to national security by giving the Chinese government backdoor access to the critical infrastructure of allied nations - an accusation Huawei has long denied.
The US government was reportedly moving to also ban Chinese technology giants Alibaba and Tencent, for being involved with the Chinese military, sources told Reuters.
