MOFCOM just issued its first order for 2021: Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures. Key message:
We are going to prohibit firms from complying with foreign laws prohibiting transactions with Chinese firms. Image
Key provisions:
1. The legislative basis is National Security Law;
2. Chinese firms and individuals are required to report foreign sanctions;
3. MOFCOM may issue injunctions prohibiting firms and individuals from recognizing, enforcing and complying with foreign sanctions. Image
4. Chinese firms suffering loss from another party's compliance with foreign sanctions can sue for damages in Chinese courts. Image
5. China could provide support to Chinese firms and individuals for losses arising from complying with Chinese junctions against complying with foreign sanctions. Image
6. China could take necessary countermeasures. Image
The new rules shall be read together with:
1. US measures banning Wechat, TikTok, Huawei, Alipay etc;
2. China's recent press releases on such measures;
3. China's recent attempt to insert denial of benefits provisions in the #CAI with the EU, as reported by @fbermingham; ImageImage
4. China's 2020 Rules on Unreliable Entity List;
5. EU's Blocking statute. Image

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Henry Gao

Henry Gao Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @henrysgao

30 Dec 20
Thanks @loyaladvisor for this. This would be the most detailed info on the #CAI before the text is out. Here are a few gems I found in the internet sector:
1. Cloud services "will now be open to EU investors subject to a 50% equity cap". Good for EU but they are late to the Party, as Amazon AMS has been in China since 6 years ago;
2. The ‘technology neutrality' clause, which ensures that equity caps imposed for telecom VAS won't be applied to other online services such as financial, logistics, medical etc. AFAIK these have never been regarded as VAS to start with and never been subject to VAS equity caps.
Read 12 tweets
15 Sep 20
The decision is hardly surprising, but there are two interesting points in the panel report:
1. Whether the Phase 1 deal constitutes a mutually agreed solution;
2. whether the US tariffs could be justified under the public morals exception.
The first one was easy, while the second one is more tricky, as the US measures were allegedly taken against IP theft, misappropriation and unfair competition by China. The Panel ruled against the US, not because the US couldn't do so, but due to the lack of nexus and necessity.
I'm most amused by the argument by China that the criminalization of a conduct under domestic law doesn't really provide sufficient justification for invoking public morals exception. I wonder if its lawyers ever realized that this argu could be used against China in another case
Read 4 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!