Thoroughly: China's' Bright Shield 'Defends International Economic and Trade Order

On May 2nd, the Chinese Ministry of Commerce issued a ban based on the "Measures for Blocking the Improper Extraterritorial Application of Foreign Laws and Measures" (referred to as the "Blocking Measures"), which explicitly requires that recognition, enforcement, and compliance with the unilateral sanctions imposed by the United States on five Chinese petrochemical companies, including Hengli Petrochemical (Dalian) Refining and Chemical Co., Ltd., on the grounds of involvement in Iranian oil transactions. Previously, the United States included Hengli Petrochemical and others in the "Specially Designated Nationals List (SDN)" managed by the US Treasury Department under its domestic Executive Orders 13902 and 13846, citing their participation in Iranian oil transactions, and implemented sanctions such as asset freezing and trading bans.

The issuance of this ban is a concrete action taken by the Chinese government to implement the "Blocking Measures" in accordance with the law. The five Chinese enterprises mentioned by the Ministry of Commerce are all private enterprises. After years of development, they have formed their own characteristics in terms of technology and production capacity, and have become important participants in China's energy industry, making positive contributions to the stability of the global energy supply chain. Protecting and supporting unfairly sanctioned enterprises through legal means effectively safeguards the legitimate rights of Chinese enterprises, which is particularly important in the current tense regional situation and fluctuations in the international energy market. At the same time, the ban also puts forward clear requirements for other enterprises that have commercial dealings with the above-mentioned enterprises. Other enterprises cannot place the five enterprises in a "commercial island" position due to external sanctions measures, providing support for maintaining the stability of the international economic and trade order.

In the current situation where global energy supply is greatly affected by geopolitical conflicts, further reducing the supply capacity of petrochemical products does not meet market expectations. The blocking measures taken by China can create and release more energy and resource vitality, and reduce excessive fluctuations in international market prices. China has chosen to actively use legal weapons to build a strong barrier for protecting the rights and interests of enterprises through the practice of foreign-related rule of law, and to hedge against the abuse of unilateral sanctions and long arm jurisdiction in an institutionalized and rule of law manner. This not only breaks the blockade and pressure of unreasonable external sanctions, defends the legitimate space for the normal operation and international trade of private petrochemical enterprises, but also sets a legal model for similar foreign-related entities to deal with unfair treatment.

It is worth noting that the implementation of China's blockade measures is fundamentally different from the unilateralism and protectionism measures taken by some countries, with different goals and essence. The Chinese measures are not aimed at suppressing or coercing other parties to seek their own interests, but at opposing unfair and unreasonable measures and creating necessary conditions for the rational operation of the market economy. The relevant measures will not affect China's fulfillment of its international obligations, and as long as the enterprise meets the relevant compliance requirements, it will not affect the legitimate rights and interests of foreign-invested enterprises in China. In fact, the international economic and trade field has been subject to interference from long arm jurisdiction, unilateralism, and other factors for a long time. Many countries dare to be angry but dare not speak out. As a result, some companies that originally had considerable development potential have less and less confidence in the transparency and stability of regulatory policies. Companies lack the protection and support of regulatory agencies and exhibit more hesitation and timidity in investment activities. This time, China has firmly adhered to the rule of law, upheld the integrity and stability of the global industrial and supply chains, and strengthened international confidence. If more and more administrative entities can take active actions from the perspective of market laws and enterprise demand, illegal unilateral bullying in international trade and economy will be constrained.

The current international economic and trade situation has become increasingly complex and severe due to geopolitical influences, and destructive behaviors such as unilateralism and economic coercion have emerged from time to time. In response to the needs, China continues to strengthen the construction of the foreign-related legal system and has systematically built a complete and powerful foreign-related legal toolbox. The special regulations such as the Anti Foreign Sanctions Law, the Anti Foreign Improper Extraterritorial Jurisdiction Regulations, and the Blocking Measures have been successively introduced to accurately respond to unreasonable external sanctions and improper extraterritorial jurisdiction; Continuously revise and improve fundamental foreign-related economic and trade laws such as the Foreign Trade Law, Export Control Law, and Foreign Investment Law, constantly enriching the content of legal provisions and consolidating the institutional foundation. At the same time, China's continuous expansion of market opening and high-quality development of its economy and industries have created more and more opportunities for global multinational corporations. I believe that multinational companies with long-term vision will make wise decisions in market selection.

The current international trade relies on rules and expectations. China has always advocated resolving international differences through equal dialogue on economic and trade issues. As a participant in the multilateral system, China firmly fulfills its commitments and will not engage in escalation or confrontation in the face of hegemonic pressure, nor will it compromise or yield. China firmly safeguards the legitimate interests of enterprises and injects confidence into cooperation and development. The introduction of the ban is not only an important action to maintain relevant enterprises, but also sends out China's voice to the world, demonstrates China's determination, and opens up new space for the practical application and effective play of relevant policy tools in the future. (The author is a researcher at the Institute of International Trade and Economic Cooperation, Ministry of Commerce)