KEVIN FRAYER/GETTY WEEK 24, 2021 I MA G ES CHINA INSIDER FOREIGN BUSINESSES IN CHINA PUT IN A BIND WITH NEW LAW See Page 2 2 | CHINA INSIDER Week 24, 2021 Week 24, 2021 CHINA INSIDER | 3 WILL RUSSELL/GETTY IMAGES OPINION Beijing’s ‘Anti-Foreign Sanctions’ Law Puts Global Businesses in Further Bind KEVIN FRAYER/GETTY IMAGES FAN YU People walk by an H&M oreign companies doing busi- store in Beijing on ness in China will soon find their March 30, operating environment littered 2021. with economic roadblocks be- cause of a series of new “anti- Fforeign sanctions” rules that China’s leg- islature rushed to pass on June 10. The new rules were introduced as coun- termeasures against foreign nations enact- ing sanctions on Beijing. This development may put foreign organizations and indi- viduals enforcing their home countries’ sanctions against China in a tough position going forward. The new law expands the Chinese re- gime’s toolkit to fight back against sanc- tions and can be used in conjunction with the existing Unreliable Entities List of com- panies it created last year. The measures are extensive and give the Chinese Communist Party (CCP) broad powers to sanction organizations and indi- viduals complying with sanctions against China. So, what exactly can it do? The CCP The Chinese consulate in Perth, Australia, on March 24, 2014. could deny visas for, deport, and restrict travel for affected entities, seize properties bank complying with President Joe Biden’s measures casually, these measures are now they have within China, block business updated executive order to affirm the available to the CCP under the new law. OPINION or personal transactions, put pressure on Trump administration policy of restricting For foreign investors and investors in the target’s family members and associ- the purchase of stock in certain Chinese multinational corporations with a presence ates, and any “other necessary measures” companies with military links by refusing in China, this law is a compliance night- deemed appropriate by the regime. to buy those companies’ stock in its Asia mare and severely increases operational Ban CCP Land Ownership Basically, the law allows the CCP to do any- emerging markets fund. risk in China. Corporate CEOs could be thing it wants under the pretense of combat- In this scenario, the CCP could punish facing a dilemma with few viable solutions. ing “discriminatory” foreign sanctions. the bank by forcing Chinese companies China’s Foreign Ministry spokesman to cancel all their business with the bank. Wang Wenbin on June 11 told reporters Immense Pressure Beijing could go as far as seizing property in Beijing, in one of the most obtuse state- in the USA: A New Bill From Texas The CCP rushed the legislation—it gave or assets owned by the bank in China. If ments of the week, that the Anti-Foreign hints that this was coming merely days the bank is one of the major U.S. invest- Sanctions Law is a net positive for foreign ANDERS CORR tions related to the ownership of land by ‘Party-building’ amongst its employees. one law of 1923 targeted the land owner- prior—during the 29th session of the 13th ment banks such as JPMorgan, which investment in China. CCP members. “How many purchases As of 2018, Guanghui Group operated 40 ship of U.S. citizens of Japanese descent. National People’s Congress, without the recently took full ownership of its China “China will only open its door wider to the Don’t mess with Texas. have proximity to U.S. military bases? internal Communist Party committees, A 1921 law in Washington that targeted usual period of public consultation. subsidiary, the CCP could seize its Chinese world and remain committed to fostering U.S. Rep. Chip Roy, a Re- How many direct connections to the U.S. 227 local grassroots CPC branches, and the Japanese went to the Supreme Court, Beijing has been increasingly dismayed business entirely. a better business environment for foreign publican who represents power grid do they already have control employed more than 6,000 Communist was upheld, and caused diplomatic ten- by recent escalating pressure from the Take fast-fashion retailer H&M as an- companies,” Wang said. the 21st Congressional over? How many of these purchases are Party of China members. ... it appears that sion with Japan. Some laws focused on new United States and its allies. The interna- other example. H&M earlier this year was Ironically, if the law is carried out, China District, which includes on farms where they are stealing valuable Guanghui Group is much more embed- Asian immigrants, but not new Scandina- tional community has stepped up criticism caught in a firestorm in China for its earlier will automatically be forcing foreign com- parts of Austin and San genetic seeds to ship back to the mainland? ded in the Communist Party-State ap- vian immigrants. of the CCP’s human rights abuses against statements condemning forced labor in panies to decouple from China. Antonio, is taking on the Why have we allowed a Chinese company paratus than most other ‘private’ sector These types of argument, however, can Uyghur minorities and Falun Gong prac- This development China’s Xinjiang region. With the new law, Chinese Communist Party (CCP) in a big, to acquire one of the largest poultry pro- businesses.” conflate patriotic support for American titioners and its suppression of political may put foreign the CCP can go much further than incit- Fan Yu is an expert in finance and eco- Texan way. Roy proposes to ban CCP mem- ducers in America?” Sun and his GH America are the types democracy and anti-communism with freedoms in Hong Kong. ing social media users to boycott H&M in nomics and has contributed analyses on bers from purchasing land in the United He appealed to the principle of reciproc- of entities that would be targeted by Roy’s racism, or reject the sovereign right of a Several actions were taken during the past organizations and China. The CCP can outright shut down China’s economy since 2015. States. ity, supported by the U.S.–China Economic CCP land bill. nation to control immigration. They typi- few years, including Canada’s house arrest of individuals enforcing H&M’s stores in China or permanently ban It’s a short, sweet, and brilliantly cut- and Security Review Commission (USCC) But there are a couple of arguments that cally fail to account for the growing mili- Huawei CFO Meng Wanzhou, international their home countries’ it from operating in the country. Views expressed in this article are the ting edge bill that should be voted into last November, with respect to land sales detractors will throw against the bill. First, tary, economic, and diplomatic power of retailers’ boycott of Xinjiang-harvested cot- While these are hyperbolic examples opinions of the author and do not neces- law ASA P. to CCP members. the Committee on Foreign Investment in 21st-century China, or its totalitarian char- ton, U.S. sanctions and trade restrictions af- sanctions against and I don’t expect the CCP to resort to such sarily reflect the views of The Epoch Times. This two-page bill has a potent engine of a “China doesn’t allow former U.S. mili- the United States (CFIUS) already reviews acteristics under the rule of the CCP. The fecting Chinese state-linked companies, and China in a tough single sentence: “Notwithstanding any other tary officers to acquire 200 square miles of some land purchases by Chinese nation- China of today is not the China of the 19th the EU putting on ice its trade and invest- position going provision of law, the President shall take such land between an active Chinese military als (including CCP members). So CFIUS century, nor is it the Japan of the 1920s. ment pact with Beijing, all of which were GREG BAKER/AFP VIA GETTY IMAGES actions as may be necessary to prohibit the base and their border with Taiwan ... so can cancel any sales that have national Today, China is communist, territorially viewed by the CCP as measures to “contain forward. Chinese Foreign purchase of public or private real estate lo- why should the U.S. allow such strategic security implications. CCP investment in aggressive, promoting its political influ- Ministry and suppress” a rising China. spokesman cated in the United States by members of the purchases by Chinese na- non-strategic land, say in the ence globally, and threatening elite cap- Wang Wenbin Chinese Communist Party.” tionals?” he said. middle of Nowheresville, ture in nations small and large. The CCP Foreign Companies to Be Marginalized takes a question Roy’s press release to accompany the bill In April, Bass gave testi- United States, provides an today enables the destruction of political, The CCP’s new retaliatory sanctions law’s at the Foreign pulls no punches. mony to the Texas Senate economic hostage of sorts. cultural, and linguistic diversity on a do- broad language makes it unprecedented in Ministry briefing “In their quest for global domination, on the issue of CCP owner- In their quest for global For example, if the U.S. mestic and global level, including through in Beijing on Nov. scope compared to historical sanctions en- 9, 2020. China has been buying up land and stra- ship of land in Texas, spe- domination, China has government needs to con- its genocide against the Uyghurs. The CCP acted by other countries. As a result, foreign tegic infrastructure all over the world and cifically, “the ownership by been buying up land and fiscate CCP property in the leads that genocide.