21 Sep 2020
Chinese regulators on Saturday introduced a sanctions regime targeting foreign companies operating in China, in a long-anticipated move seen as reciprocation for US policy targeting Chinese firms like Huawei.
China’s Ministry of Commerce said the “unreliable entities list” will contain foreign companies that Beijing says “harm China’s national sovereignty, security, and development interests” or violate “internationally accepted economic and trade rules.” The list of firms has not yet been published.
Penalties for companies the end up on the list include fines, restrictions on importing and exporting and investment, and restrictions on moving employees into China.
Any firm suspected of violating the provisions will be investigated by China’s cabinet, the State Council, and will have the opportunity to defend itself in front of Chinese investigators.
‘Maintain a fair order’
Similar to US policy, Chinese firms that depend on business with blacklisted companies are allowed to apply for exemptions for any ban preventing cooperation.
The terminology used by China’s Ministry of Commerce to justify the sanctions regime is also similar to that used by US regulators in limiting the operations of Chinese companies in the US.
The ministry said the list will “maintain a fair and free international economic and trade order, and protect the legitimate rights and interests of Chinese enterprises, other organizations or individuals.
Read more at Deutsche Welle
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