China creates new measures to protect companies from US sanctions

The Background

The new regulations unveiled by the commerce ministry prohibit Chinese companies and individuals from complying with punitive measures ordered by foreign governments, with the measures to take effect immediately. Companies which comply with the 'illegal' foreign sanctions could also be sued in the Chinese courts. The new measures allow Chinese companies to appeal to the commerce department if they fear they have been targeted by unjust foreign sanctions.

Key Information

The Chinese Government may offer support to its domestic companies or even take counter-measures. This seems a clear attempt to counter-act the measures put in place by the outgoing Trump administration. Although the 'outgoing' Trump administration seems to suggest this battle is over, the Chinese officials are bracing themselves for a flurry of punitive measures in Mr Trump's last days in office, where they expect him to leave some kind of mark. It therefore remains questionable whether these measures will do enough, or once again will heighten the so called trade war between the two global economic giants.