. | . |
Foreign businesses shocked by rollout of China's anti-sanctions law by AFP Staff Writers Beijing (AFP) June 11, 2021 China's quick rollout of a law against foreign sanctions has left European and American companies shocked and facing "irreconcilable" compliance issues, two top business groups said Friday, despite Beijing saying the move would unlikely impact investment. The law came into effect on Thursday, adding to China's toolbox as it builds its defences against US and EU pressure over trade and human rights. The move also came just a week after US President Joe Biden expanded a blacklist of Chinese companies in which Americans are not allowed to invest -- allowing Beijing to now hit back at those who formulate or comply with foreign sanctions. "European companies in China are shocked by the lack of transparency and speed of this process," European Chamber president Joerg Wuttke told AFP, referring to the passing of the new law. With the fresh rules prohibiting organisations from implementing what Beijing deems discriminatory and restrictive measures, "foreign firms remain very much stuck between a rock and a hard place," he said. American Chamber of Commerce chairman Greg Gilligan cautioned that the new law "presents potentially irreconcilable compliance problems for foreign companies". Rushing through a new law without an opportunity for public comment severely jeopardises foreign investor confidence in China's legal system as well, he added. But Chinese foreign ministry spokesman Wang Wenbin told a regular press briefing on Friday he did not see a definite link between the new law and foreign investment. "If anything, the enactment of the anti-foreign sanctions law provides a predictable legal environment... for foreign companies operating in China," he said. Wuttke, however, warned that the action was not conducive to attracting investment, or in reassuring companies that "already feel they may be used as sacrificial pawns in a game of political chess". "There is a real concern that this will further destabilise EU-China relations," he said. In the European Chamber's latest business confidence survey released this week, 41 per cent of respondents said China's business environment had become more politicised last year. Most reported they expect the situation to remain the same or deteriorate over the coming year.
China's anti-sanctions law: What we know It comes just a week after US President Joe Biden expanded a blacklist of Chinese companies in which Americans are not allowed to invest. Here is what we know about the law so far: - What is it? - The anti-foreign sanctions law was rushed into force on Thursday. It aims to protect Chinese individuals or organisations in the event that a country "uses various pretexts or its laws" to take "discriminatory" action against them. No country is specifically named. But Beijing has accused Western nations of "suppressing" China's development, especially the United States. It has lashed out at "illegal and unreasonable" sanctions over human rights and flagged an urgent need to fight back. - What could it do? - Countermeasures listed in the law include denying visas, deportation, or seizing assets of those who formulate or comply with sanctions against Chinese businesses or officials. It rules that authorities are not only able to target individuals and groups but can also take aim at their family members. The law is broad and "significantly increases the punitive power of China's anti-sanctions measures", said University of Hong Kong associate professor Angela Zhang. "The broad scope of this framework means that lots of folks, like scholars, pundits, think tanks, could be sanctioned for supporting sanctions on China," warned Julian Ku, an expert on international law at Hofstra University. - How could it impact business? - Senior executives of entities on a countermeasure list could also come under pressure, with potential implications for a large number of people and businesses. "Affected businesses could lose entire access to the Chinese market, and Chinese citizens and institutions will need to cut ties with affected NGOs and think tanks," Zhang told AFP. The law could also create severe compliance issues for multinational companies. Part of the legislation prohibits those in China from going along with designated foreign sanctions. It acts in a similar way to a European blocking statute "which nullified the effect of US Iran sanctions within the EU", said Ku. This puts foreign businesses in a bind if they cannot legally comply with both US sanctions and Chinese prohibitions. - Why now? - The law builds on earlier measures which prevent companies and individuals from complying with foreign sanctions targeting China. In an explainer on the National People's Congress website, an official said the law was passed in a short period of time because there was "an urgent need to counter the hegemonism and power politics of certain Western countries". The law will help "counteract the containment and suppression" China faces, the official added. Beijing has long complained about US sanctions and trade restrictions affecting Chinese companies. But in recent months Biden has stepped up US criticism over intellectual property theft and alleged human rights abuses in Hong Kong and the northwestern Xinjiang region. - How much of a threat is it? - Ku warned the law had "some reasonable parts, and some troubling parts". The section allowing for retaliatory sanctions "is unprecedented compared to other countries' sanctions regimes", he said. Foreign companies are regularly caught in the crosshairs of tension between China and Western nations, including recent nationalist attacks on fashion brand H&M for voicing concern about forced labour claims in Xinjiang. Zhang said she believes Chinese authorities will not immediately wield the new powers, given that anxiety among foreign businesses could lead to more decoupling. "If, however, foreign governments continue to press on with aggressive sanctions, then I believe China will start deploying those anti-sanctions laws to demonstrate their coercive power," she said.
G7 countries move closer to tax plan for US tech giants San Francisco (AFP) June 11, 2021 G7 countries that make up lucrative markets for US tech giants have moved closer to a plan to squeeze more tax money from the coffers of Amazon, Apple, Facebook and Google. The group, including Britain, Canada, France, Germany, Italy, Japan and the United States, has visions of a global tax rate of at least 15 percent on the multinational behemoths. The move comes as US President Joe Biden is pressing to raise the corporate tax rate, taking particular aim at companies reaping fortunes. "Pres ... read more
|
|
The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us. |