China’s top legislative body passed a new anti-sanction law that will not reverse US sanctions, but may compel foreign firms to think carefully before enforcing them, reported the South China Morning Post.
The new law, passed on June 10, will not free China’s tech companies that are already facing the effects of US sanctions, but it could move along the decoupling process, says experts.
China’s anti-sanction law provides legal support for retaliation against any entity that enforces foreign sanctions. The move comes just days after the US Senate passed the Innovation and Competition Act, formally identifying China as a major tech rival. China’s new legislation is the strongest legal response to foreign sanctions yet.