Last month, China passed a law to counter foreign sanctions and the so-called “power politics” of some Western countries. Foreign businesses with suppliers in China may face more scrutiny from the government for carrying out due diligence in the Asian powerhouse, leaving them tangled in a wider geopolitical row. China’s top legislature, the National People’s Congress, passed an anti-sanctions law on June 10, sparking concerns from the global business community about how to manage operations and suppliers in China. The law aims to stop foreign entities or individuals from carrying out “discriminatory measures” against Chinese companies and people. Consequences of being put on the anti-sanctions list include expulsion from China, asset freezes, and restrictions on doing business with entities or individuals in the country. “The new anti-sanctions law is China’s most wide-ranging legal tool designed to retaliate against countries perceived to be interfering in China’s internal affairs,” reads a report by Verisk Maplecroft, a global risk analytics company. “Aimed particularly at the US and its allies, the law intends to show that Beijing is willing to sacrifice the interests of foreign business to secure its sovereignty and security.” The report adds that foreign corporates and financial institutions that comply with… continue reading
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