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China·Sanctions·Trade & Economy

China expands anti-sanctions toolkit, putting multinational firms in a legal crossfire

Friday, 10 July 2026, 06:17 · 1 min read

China has introduced two new regulations since March and is drafting a third that significantly expand its capacity to retaliate against foreign entities that enforce Western sanctions or export controls deemed to carry "improper extraterritorial jurisdiction." Multinational companies now risk fines, asset freezes, and trade restrictions if they comply with US or EU measures in ways Beijing considers discriminatory — creating direct conflicts with their legal obligations in Western markets. Analysts warn the moves signal a more assertive and formalised Chinese counter-sanctions posture, with foreign firms increasingly caught, as one advisory firm put it, "between an American rock and a Chinese hard place."

Sources
Al Jazeera EnglishChina expands anti-sanctions toolkit, raising risks for foreign firms ↗︎
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