A newly released draft of China’s finance law has proposed measures to combat foreign sanctions, safeguard offshore financial assets and carry out national security checks on certain financial data, as Beijing pursues its financial superpower ambitions amid risks and external complexities.
“If any country or region violates international law and the basic norms of international relations by taking discriminatory prohibitions, restrictions or other measures in the financial realm against Chinese citizens or organisations, China shall have the right to take countervailing measures,” according to article 85 of the draft law.
The draft was jointly released by the Ministry of Justice, the People’s Bank of China and three other financial regulators on Friday to solicit public feedback until April 19.
The draft stipulates that China has the right to impose sanctions on any country or region for acts that “endanger China’s financial security” and that are deemed to be in violation of international law. It also targeted long-arm jurisdiction.
If the “extraterritorial application” of foreign laws and measures “unduly prohibits or restricts” Chinese citizens or organisations from conducting normal financial activities with a third country or region, China had the right to “block” such undue extraterritorial application, it said.
The draft law also prohibits entities and individuals from aiding or supporting foreign laws or acts that endanger China.