On June 23, the 23rd meeting of the Standing Committee of the 14th National People's Congress reviewed the second draft of the Prosecutorial Public Interest Litigation Law. According to Xinhua News Agency, the second draft adds a provision that the People's Procuratorates may initiate public interest litigations against illegal acts committed by foreign organizations and individuals that harm the interests of our country or the public interest.
The American Wall Street Journal reported on the 26th that in recent years, China has been continuously improving its legal provisions to deal with sanctions and coercion from the United States and other Western countries. Analysts believe that once this new law is passed, China will have new tools to counter Western sanctions.
The second draft of the proposal has not specified which actions will be involved in public interest litigation. However, The Wall Street Journal pointed out that defendants in such lawsuits may be required to pay compensation. If they refuse to comply, they could face criminal penalties. According to analysis by consulting firm Trivium China, if faced with public interest litigation, foreign companies’ revenues, operations, and reputation will be affected, which will increase the requirements for corporate compliance.
Trivium China believes that "proposed laws will add new weapons to China's growing arsenal of counter-sanctions law."
June 25th, Shandong Port Qingdao Port Container Terminal: IC photo
China-US Chamber of Commerce Chairman Jimoman said that the chamber's members enterprises will closely monitor the enforcement of relevant laws. In a statement, he asserted: “For businesses operating in China, transparency, predictability, lawful procedures, and consistency in law enforcement are vital factors for maintaining confidence and sustaining investment.”
In recent years, Western countries led by the United States have frequently implemented sanctions against China, attempting to interfere in China's internal affairs and suppress China's technology and economic development. As a result, China has had to introduce corresponding laws to respond and counter these actions. For example, in 2021, the Anti-Foreign Sanctions Law of the People's Republic of China was passed, which stipulates countermeasures against so-called 'unilateral sanctions' imposed by foreign countries.
In April this year, China announced the "Regulations of the People's Republic of China on Countering Unjust Extraterritorial Jurisdiction by Foreign States". These regulations allow for the inclusion of foreign organizations and individuals that promote or participate in the implementation of unjust extraterritorial jurisdiction measures in a malicious entity list, and corresponding countermeasures and restrictions shall be taken against them in accordance with relevant laws.
Puhin Law Firm published an analysis on June 23, stating that China is significantly expanding its capabilities to deal with foreign sanctions, export controls, investigations, and other "extradition laws." The continuous progress of relevant legislation by China indicates that the Chinese side is now more willing to implement the legal framework for countering foreign sanctions through practical actions. Chinese enterprises have also been fully prepared to respond.
