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China Issues Rules to Counteract “Unjustified” Extraterritorial Application of Foreign Measures

January 12, 2021, Covington Alert

On January 9, 2021, China’s Ministry of Commerce released the Rules on Counteracting Unjustified Extraterritorial Application of Foreign Legislation and Other Measures, which took effect immediately. Specifically, the Rules are designed to “counteract” the extraterritorial application of “foreign [i.e., non-Chinese] legislation” or “measures” when such application “unjustifiably” prohibits or restricts a Chinese citizen, entity or other organization from engaging in “normal business activities” with “parties of a third country (region)” “in violation of international law and the basic principles of international relations.”

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