By Vish Gain for AMLi
CHINA HAS ISSUED new orders that prohibit its companies from complying with foreign punitive measures in an ongoing retaliation against Donald Trump’s string of recent sanctions.
The Chinese Ministry of Commerce said on Saturday that the sanctions “improperly prohibit or restrict” Chinese economic interests, according to a report by Hong Kong-based South China Morning Post.
The new rules, effective immediately, require Chinese individuals or institutions to report to the ministry within 30 days of their business being affected by foreign compliance laws. Any companies complying with illegal foreign sanctions could also be sued for compensation in Chinese courts.
This could prove costly to foreign entities with significant investments in one of the world’s biggest markets.