Rules on Counteracting Unjustified Extraterritorial Application of Foreign Legislations and Other Measures
The Chinese government recently introduced the Rules on Counteracting Unjustified Extraterritorial Application of Foreign Legislation and Other Measures in a response to US sanctions on Chinese firms. The rules would exempt Chinese firms from having to comply with foreign restrictions. These firms would be able to sue for compensations if such sanctions harm their interests and the Chinese courts could punish the global firms abiding by such laws. The rules are significant as the MNCs would now have to choose between conflicting compliance regimes.