The State Council Issued the “Provisions on the Implementation of the Anti-Foreign Sanctions Law of the People's Republic of China”

On March 23, 2025, the State Council issued the "Provisions on the Implementation of the Anti-Foreign Sanctions Law of the People's Republic of China" (hereinafter referred to as the "Implementation Provisions"), which came into effect from the date of issuance. These Implementation Provisions represent the first set of relevant administrative regulations published since the introduction of the Anti-Foreign Sanctions Law of the People's Republic of China (hereinafter referred to as the "Anti-Sanctions Law"). They primarily serve to further clarify and detail some of the general provisions outlined in the Anti-Sanctions Law. Specifically, the main contents are as follows:

I. Further Clarification of Applicable Circumstances
Article 3 of the Anti-Foreign Sanctions Law outlines the fundamental principle for taking legal measures. It states that when a foreign country, under various pretexts or based on its domestic laws, attempts to contain or suppress China, imposes discriminatory restrictions on Chinese citizens or organizations, or interferes in China's internal affairs, China has the right to adopt corresponding countermeasures. Additionally, regarding acts by foreign countries, organizations, or individuals that implement, assist, or support actions endangering China's sovereignty, security, and development interests, the relevant provisions of this law shall be followed only when it is necessary to take essential countermeasures.

Article 3 of the Implementation Provisions further specifies that if foreign organizations or individuals implement, assist, or support actions harmful to China's sovereignty, security, and development interests, relevant departments of the State Council may also include them on the countermeasures list and implement corresponding measures. From this, it can be seen that the applicable scenarios for countermeasures not only cover discriminatory restrictions imposed by foreign countries but also encompass actions by foreign countries, organizations, or individuals that endanger China's sovereignty, security, and development interests, including acts of assistance and support.

II. Elaboration of Countermeasures
Article 6 of the Anti-Foreign Sanctions Law stipulates several main countermeasures, such as denying visa issuance, prohibiting entry, canceling visas or deporting; sealing, seizing, freezing movable, immovable and other properties within China; and banning or restricting organizations and individuals within China from engaging in related transactions, cooperation, etc. The Implementation Provisions further clarify the connotations of "other properties", "related transactions and cooperation" and "necessary measures". It is important to note that according to Article 8 of the Implementation Provisions, the banned related transactions and cooperation also include legal services. That is, individuals or organizations subject to countermeasures may not be able to obtain legal services from domestic legal institutions.

III. Refining the Law Enforcement Procedure
Article 4 of the Anti-Foreign Sanctions Law only states that relevant departments of the State Council may take countermeasures, without further elaborating on the specific procedures. The Implementation Provisions, however, clarify procedural regulations such as the "basic procedures for taking countermeasures," the "content to be included in the countermeasures," the "departments responsible for implementing each countermeasure," and "how coordination among departments should be carried out."

IV. Clarification of Legal Consequences of Violations and Remedial Measures
Article 14 of the Anti-Foreign Sanctions Law stipulates that any organization or individual failing to implement or cooperate in countermeasures will be held legally liable. Article 13 of the Implementation Provisions further clarifies that relevant State Council departments can order corrections, impose prohibitions or restrictions on participation in government procurement and bidding, prohibit or restrict the importation or exportation of relevant goods and technology or international services or trades, prohibit or restrict data and personal information cross-border transfer, prohibit or limit exit and domestic stay, etc., for non-compliance. Articles 14, 15, and 16 of the Implementation Provisions outline remedial measures for those subject to countermeasures.

In general, the Implementation Provisions refine operational measures, enhancing the enforceability of the Anti-Foreign Sanctions Law and reflecting progress in the legalization of the countermeasures procedure. Though some aspects remain unclear, these gaps might allow room for future development. Currently, these procedures mainly offer a basis for negotiating specific issues. For enterprises, it is crucial to focus on compliance issues while leveraging these government-provided measures to address cross-border disputes.