mofcom blocking rules

[2] The new Chinese rules appear to borrow much from the European model. 12 Where a Chinese Person fails to truthfully report as required or fails to comply with a Blocking Order, MOFCOM may give a … MOFCOM will make a decision within 30 days upon application, while the criteria and principles for MOFCOM to make decisions are not nailed down in the Blocking Statute. The MOFCOM Blocking Rules issued in January 2021 had already created a civil claim where a Chinese party is harmed by a counterparty’s compliance with foreign sanctions outside of that foreign government’s jurisdiction (i.e., extraterritorial or “secondary” sanctions). Kelly Austin – Hong Kong (+852 2214 3788, kaustin@gibsondunn.com) China’s New Blocking Statutes – MNCs Beware! safeguard China’s economic and security interests against foreign governments’ unilateral legal regimes that seek to restrict business dealings between Chinese and third-country parties. The Rules are the latest of these defensive measures. Article 9 has already drawn a great deal of attention from non-Chinese multinationals because of the liability it creates. Jose W. Fernandez – New York (+1 212-351-2376, jfernandez@gibsondunn.com) Months later, in January 2021, MOFCOM issued the Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures (Extra-territorial Rules), a sanctions blocking framework. [8]   Chinese Blocking Statute (Article 8). Found inside – Page 111The new rules also place MOFCOM in the role of determining if the domestic acquisition target has been appropriately valued and allow MOFCOM to initiate an ... The Blocking Rules are designed to provide MOFCOM and other Chinese authorities with more discretion and flexibility in determining what laws they intend to block. The question for the United States with respect to this new Chinese law will be how to balance the progressively aggressive suite of U.S. sanctions and export control measures levied against China—which the U.S. Government is unlikely to pare back—against the growing regulatory risk for global firms in China that could be caught between inconsistent compliance obligations. Exemption Process: A Chinese person or entity will be able to apply for an exemption from compliance with the prohibition by submitting a written application to the State Council. A Chinese person or entity who suffers “significant losses” due to a counterparty’s compliance with a prohibited law may also obtain “necessary support” from the Chinese government[12]. courts to recover losses. On Saturday 9 January 2021, the PRC Ministry of Commerce (MOFCOM) issued MOFCOM Order No. In an attempt to counter the effects of such sanctions or restrictions which are specifically targeting Chinese businesses, the PRC Ministry of Commerce (MOFCOM) has issued on January 9 2021, the “Rules on Counteracting Unjustified Extra-Territorial Application of Foreign Legislation and Other Measures” (“Blocking Rules”). determined to unjustifiably prohibit or restrict the citizens, The Development: China's Ministry of Commerce ("MOFCOM") released Rules on Counteracting Unjustified Extra-Territorial Application of Foreign Laws and Other Measures ("Rules") on January 9, 2021. On 9 January 2021, the MOFCOM issued the Blocking Rules. [10] Under the EU Blocking Statute, EU entities are also entitled to sue for damages, including legal costs, arising from the application of the extraterritorial measures (enforcement of which claims may extend to seizure and sale of assets).[11]. Fang Xue – Beijing (+86 10 6502 8687, fxue@gibsondunn.com) The Blocking Rules do not expressly grant the MOFCOM-led working group (referred to as a Working Mechanism) power to impose administrative penalties on non-Chinese parties, but it appears that multinational businesses may have exposure to penalties through their Chinese subsidiaries. National Security, CFIUS, FARA, Sanctions + Export Controls. All information these cookies collect is aggregated and therefore anonymous. Therefore, this theory of liability potentially extends to companies located in third countries that, for example, stop doing business with a Chinese Party due to U.S. secondary sanctions. On 10 January 2021, the Ministry of Commerce of the People’s Republic of China (“MOFCOM”) promulgated the Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures (the “Blocking Rules”), which came into effect the same day. [5]   Chinese Blocking Statute (Articles 4 & 6). China Issues Blocking Rules. [1]   MOFCOM Order No.1 of 2021 on Rules on Counteracting Unjustified Extra-Territorial Application of Foreign Legislation and Other Measures (January 9, 2021) (“Chinese Blocking Statute”), http://www.mofcom.gov.cn/article/b/c/202101/20210103029710.shtml (Chinese), http://english.mofcom.gov.cn/article/policyrelease/questions/202101/20210103029708.shtml (English), [2]   https://www.gibsondunn.com/new-iran-e-o-and-new-eu-blocking-statute-navigating-the-divide-for-international-business/, [3]   Chinese Blocking Statute (Article 5). [4], Implicated Foreign Laws: Unlike the EU Blocking Statute, the specific laws and measures covered by the Chinese Blocking Statute have yet to be identified. On January 9, 2021, China’s Ministry of Commerce (MOFCOM) published The Rules on Counteracting Unjustified Extraterritorial Application of Foreign Legislation and Sanctions (Blocking Statute) with immediate effect. New Blocking Rules by China’s MOFCOM Create New Risks for Chinese and Foreign Companies Morrison & Foerster LLP China, USA January 20 2021 From a comparative point of view, this book reviews the historical development of maritime policy and regulatory legislation in the EC and the PRC, catches insight into the system of regulation regime and individual provisions in ... These factors are all phrased in broad terms and open-ended, leaving the competent authorities ample room for discretion. 6 MOFCOM only indicated that the Chinese government will “closely track” any unjustifiable extraterritorial application without specifying when to expect issuance of Prohibition Orders. a reporting obligation on Chinese Persons to report to MOFCOM within 30 days where they have been prohibited or restricted by foreign law or other measures.12 Where A PRC citizen, legal person or organisation may apply to MOFCOM for exemption from compliance with a Prohibition Order. *** As publicly admitted, Beijing basically modeled its Rules on the EU’s blocking statute. Second, Article 11 permits the Chinese government to provide “necessary support.” However, the Rules do not specify the nature of this “guidance,” “service,” and “support,” or the mechanisms for seeking or providing them. unjustified extra-territorial application, in China and to Chinese persons and entities, of certain foreign legislation and measures. These cookies don’t collect information that identifies a visitor. (MOFCOM Commentary on the Blocking Rules during a Q&A is available in Mandarin.) How China Blocking Rules Affect Multinationals. On 9 January 2021, the Ministry of Commerce of the People’s Republic of China (MOFCOM) published the ‘Rules on Blocking Unjustified Extraterritorial Application of Foreign Legislation and Other Measures’ (the Rules), which came into force on the same date. Reports can be made confidentially by request. The Blocking Rules are intended to enable China to legally nullify the effect of US sanctions that may effectively apply extraterritorially. On January 9, 2021, the Ministry of Commerce ("MOFCOM") of the People’s Republic of China ("PRC") issued Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures (the “Blocking Rules”), which are effective immediately. [10]   Chinese Blocking Statute (Article 9). On January 9, 2021, the Ministry of Commerce of the People’s Republic of China (the “MOFCOM”) issued the MOFCOM Order No. The Task Force will assess, pursuant to Article 6, whether the Extraterritorial Measure is unjustified based on a set of factors that include principles of international law and potential impact on Chinese national or private interests. [11]   Article 6 of Council Regulation (EC) No 2271/96 of 22 November 1996 protecting against the effects of the extra-territorial application of legislation adopted by a third country, and actions based thereon or resulting therefrom. 1. In January the Chinese Ministry of Commerce (MOFCOM) released new rules titled the ‘Rules on Counteracting Unjustified Extraterritorial Application of Foreign Legislation and Other Measures’, or the ‘Blocking Statutes’. However, the EU Blocking Statute provides for approval “(…) without delay”[9]—which in practice can mean significantly more than 30 days. China’s Ministry of Commerce (“MOFCOM”) issued its latest blocking statute against U.S. export controls at the beginning of this year. The Rules contain notable parallels with the European Union’s blocking statute both of which: (i) impose an obligation on persons subject to an Extraterritorial Measure to proactively notify relevant authorities; (ii) create a basis for persons harmed by the Extraterritorial Measure to claim compensation from the party that caused harm by complying with it; (iii) allow the imposition of civil penalties on parties that fail to comply with the Rules; and (iv) create a mechanism to permit compliance with an Extraterritorial Measure on a case-by-case basis. The reporting mechanism would help Chinese government to gain more visibility as to how Chinese Persons would be affected by those restrictive measures and explore the possibilities of a well-coordinated approach to explore overall solutions while leaving flexibility to adopt different measures to protect Chinese Persons. The EU Blocking Statute has a similar exemption mechanism. Notably, the “parties” who could face a claim are not expressly limited to Chinese Parties or even parties located in China. Lastly, overseas subsidiaries of Chinese companies, historically, would not be considered “Chinese legal persons” nor fit the definition of “other organizations” in China. 4 See our summary here. There are several core components to the new Chinese rule: Reporting Obligation: The Chinese Blocking Statute creates a reporting obligation for Chinese persons and entities impacted by extraterritorial foreign regulations. China Released Blocking Rules to Counteract US Long-arm Jurisdiction. China Released Blocking Rules to Counteract US Long-arm Jurisdiction. The rules, which consist of only 16 articles, became effective upon publication. The Blocking Rules are formulated pursuant to the PRC National Security Law and other relevant laws. According to Article 2 of the Rules and the relevant press conference held by MOFCOM, the Rules apply to situations where the extra-territorial application of foreign legislation and other measures … 1 of 2021 on Rules on Counteracting Unjustified Extra-Territorial Applications of Foreign Legislation and Other Measures (the Rules). Found insideThe Coca-Cola/Huiyuan decision was the first time that the MOFCOM had blocked a transaction under the AML merger control regime, and it shed some light on ... Consequences of Non-Compliance: A Chinese person or entity who fails to comply with the reporting obligation or the prohibition order may be subject to government warnings, orders to rectify, or fines. [1] While the law is effective immediately, as noted below, it currently only establishes a legal framework. Found insideThis report assesses Chinese investment in U.S. aviation from 2005 to 2016. sanctions. On January 9, 2021, the PRC Ministry of Commerce (the “MOFCOM”) announced the Rules on Blocking Unjustified Extraterritorial Application of Foreign Legislation and Other Measures (the “Blocking Rules”) with immediate effect. Found insideAs the authors of this volume write, it is time for a wake-up call. Found insideMinistry of Commerce, People's Republic of China ('MOFCOM'), ... Benjamin Haas, China Moves to Block Internet VPNs from 2018, The Guardian (London, ... According to its Article 2, the Blocking Rules apply to situations where the extra-territorial application of foreign legislations and other measures, in violation of international law and the basic principles of … The language in the Blocking Statutes is vague and general in nature and may be subject to discretionary interpretation by MOFCOM. Further, there has been no indication of whether MOFCOM will issue further guidance to allow multinational companies (MNCs) to better understand the scope of the Blocking Statutes restrictions. Order No. Found inside – Page 33Merger control laws fall in a different category of antitrust ensorcement in ... a properly defined relevant market and may be blocked before consummation . Found inside – Page 387... MOFCOM had blocked a transaction under the AML merger control regime. ... of Domestic Enterprises by Foreign Investors 2003 (the Interim M&A Rules), ... Article 13 empowers MOFCOM to issue warnings, order remediation, and impose fines on Chinese Parties who (1) fail to make a truthful report or (2) fail to comply with a Prohibition Order. It is unclear how Chinese courts would enforce their judgments in favor of a Chinese Party against an overseas defendant; for example, it remains to be seen whether a Chinese court might enforce a judgment against the overseas defendant’s subsidiary or assets in China. Both Chinese companies and foreign companies with operations in China need to consider the implications of the Rules in light of the recent spate of U.S. sanctions, export controls, and other government measures with extraterritorial effect. The Rules bear resemblance to the EU's Blocking Regulation, The Rules require MOFCOM to maintain the confidentiality of the report, the year of the “bully” As provided by Article 2, the Blocking Rules apply to citizens, by the law, it shall report such facts to MOFCOM within 30 days. Laura R. Cole – Washington, D.C. (+1 202-887-3787, lcole@gibsondunn.com) On January 9, 2021, the PRC Ministry of Commerce (the “MOFCOM”) announced the Rules on Blocking Unjustified Extraterritorial Application of Foreign Legislation and Other Measures (the “Blocking Rules”) with immediate effect. On January 9, 2021, the Ministry of Commerce of the People’s Republic of China issued the MOFCOM Order No. Article 8 provides that a Chinese Party may apply for exemption from compliance with a Prohibition Order by submitting a written application outlining the reasons for the application and the scope of exemption. A PRC citizen, legal person or organisation may apply to MOFCOM for exemption from compliance with a Prohibition Order. As noted above, a number of key aspects of the Rules need to be clarified in future implementation regulations or as the first Prohibition Orders are issued—including whether Chinese branches or offices of foreign companies and Chinese overseas subsidiaries are subject to the Rules, and how compensatory judgments against overseas companies could be enforced. These cookies will be stored in your browser only with your consent. However, due to the lack of clarity on a few key points (e.g., application scope, triggers and procedures of reporting obligations, enforcement of compensation claims), it remains to be seen how the Blocking Rules would be enforced in practice. Background. On January 9, 2021, China’s Ministry of Commerce (MOFCOM) issued its No. The Blocking Rules apply to “foreign laws and measures” that (a) The Blocking Rules were formulated in accordance with the PRC National Security Law, and aim to (amongst others) counteract the impact on Chinese companies and citizens caused by unjustified extra-territorial application of foreign legislation and other relevant measures (“Foreign Measures”). Found inside – Page 132Indeed, all seven merger review decisions published by MOFCOM to date either blocked or imposed remedies on offshore transactions (although the ... © Copyright 2021 – Sanctions & Export Controls Update, Hong Kong: Amendments to Hong Kong’s dual-use control list, US Issues Additional Sanctions Targeting Russian Pipeline Projects and Under the Chemical Weapons Programs, Recast EU Dual-Use Regulation has now entered into force, BIS Designates Six Russian Organizations to the Entity List Already Designated as Specially Designated Nationals, Russian nationals added to UK Chemical Weapons financial sanctions regime over links to Navalny poisoning, OFAC and BIS Issue Joint Fact Sheet in Support of the Provision of Internet and Telecommunication Services to the Cuban People, ECJU removes Afghanistan as destination for open general export licences, OFAC Issues General License 40 Authorizing Certain Liquefied Petroleum Gas Exports to Venezuela and Related FAQs, BIS Adds Seven Chinese Parties Involved in Supercomputing to the Entity List, UK, US and Canadian Governments Announce New Measures Over Alleged Xinjiang, China Human Rights Concerns, US Enacts NDAA 2021 with Additional Sanctions against Turkey, Russia, and China. Please contact the Gibson Dunn lawyer with whom you usually work, the authors, or any of the following leaders and members of the firm’s International Trade practice group: United States: Found inside – Page 277For example, a new regulation in August 2006 provides MOFCOM with broad discretion to block foreign acquisition of domestic companies involved in a “key ... If you are not already a client of Morrison & Foerster, do not include any confidential information in this message. The Blocking Rules reflect the EU’s Blocking Statute, which was introduced in 2018 and which blocks EU firms from complying with the US’ sanctions on Iran. On Jan. 9, the Ministry of Commerce (MOFCOM) issued “Rules on Counteracting Unjustified Extraterritorial Application of Foreign Legislation and Other Measures” (the Chinese Blocking Statute). Found inside – Page 102In a rebuttal to the 2018 Special 301 Report, MOFCOM blamed the United ... China's position is that the US trade war has no justification under WTO rules. With respect to “support” from the Chinese government, the Blocking Rules do not elaborate on what such support might entail, but it could include both trade For example, U.S. secondary sanctions—i.e., sanctions that do not involve U.S. persons or other U.S. touchpoints—imposed by the U.S. government are clearly extraterritorial by design and are well within scope. January 14, 2021 By Vivian Wu 4 Mins Read. R.L. 1 of 2021 on Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures (the “Rules”) on 9 January 2021 with immediate effect. Found inside – Page 30The Disposal Rules do , however , require the disclosure of pending as well ... proposed takeover of Huiyuan Juice ) was blocked by MOFCOM , and bccausc thc ... The Blocking Rules also include a reporting obligation on Chinese Persons to report to MOFCOM within 30 days where they have been prohibited or restricted by foreign law or other measures. ©1996-2021 Morrison & Foerster LLP. On January 9, China’s Ministry of Commerce (MOFCOM) published its Rules on Counteracting Unjustified Extra-Territorial Application of Foreign Laws and Other Measures, effectively immediately. Reporting Obligation.3 The Blocking Rules require a Chinese Person to report to MOFCOM within 30 days if the Chinese Person is prohibited or restricted from engaging in normal business activities with parties of third countries/regions due to non-Chinese laws or measures. [8] The format for applying for an exemption is not yet clear. Any information concerning the People’s Republic of China (“PRC”) is not an opinion on, determination on, or certification of the application of PRC law. On January 9, 2021, China’s Ministry of Commerce (“ MOFCOM ”) issued its first order of the year, the Rules on Counteracting Unjustified Extra-Territorial Application of Foreign Legislation and Other Measures (the “ Rules ”), which are immediately effective as of the date of promulgation. Unlike the MOFCOM’s Blocking Rules, the Law imposes prohibitions regarding offending foreign sanctions without the government first identifying such sanctions. Necessary cookies are absolutely essential for the website to function properly. Peter Alexiadis – Brussels (+32 2 554 72 00, palexiadis@gibsondunn.com) You have not solved the recaptcha challenge yet or session expired, try again. The EU Blocking Statute, in comparison, applies only to a specific set of laws specified in its Annex[7]–which presently consists principally of certain U.S. sanctions on Cuba and Iran. In January 2021, MOFCOM published Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures (Blocking Statute) — a directive aimed at counteracting the effects of U.S. secondary sanctions. [13] Under the EU Blocking Statute, individual member states exercise enforcement authority. This category only includes cookies that ensures basic functionalities and security features of the website. The Task Force is empowered to suspend or withdraw Prohibition Orders on a case-by-case basis. As explained below, failure to report may lead to warnings and/or fines. Found inside – Page 43Ministry of Commerce (MOFCOM): MOFCOM is under the State Council and is charged with managing China's external economic relations. Penny Madden – London (+44 (0)20 7071 4226, pmadden@gibsondunn.com) Similar to the EU Blocking Statute, these rules block Chinese persons and companies from … Benno Schwarz – Munich (+49 89 189 33 110, bschwarz@gibsondunn.com) MofCOM did not tarry with the usual legislative procedure in preparing this Rule. MofCom Issues Rules Requiring Non Compliance with Foreign Sanctions Published on January 9, 2021 January 9, 2021 • 22 Likes • 1 Comments Such request will need to provide the reasons for and the scope of the requested exemption. You also have the option to opt-out of these cookies. January 14, 2021. Vivian Wu is a partner in Baker McKenzie's Beijing office, advising US and European corporations on regulatory, compliance and FCPA-related matters in China. Patrick Doris – London (+44 (0)207 071 4276, pdoris@gibsondunn.com) Cookies that tie into analytics systems, such as Google Analytics, YouTube and Vimeo analytics for embedded video, etc. MOFCOM's Blocking Rules appear to mainly target any action under U.S. secondary sanctions that "unjustifiably prohibits or restricts the citizens, legal persons or other organizations of China from engaging in normal economic, trade and related activities with a third country (or region) or its citizens, legal persons or other organizations." The Rules bear resemblance to the EU's Blocking Regulation, The Rules require MOFCOM to maintain the confidentiality of the report, the year of the “bully” As provided by Article 2, the Blocking Rules apply to citizens, by the law, it shall report such facts to MOFCOM within 30 days. Found inside – Page 92MOFCOM rejected the P3 Alliance because it believed that it would have an ... liners proposed alliance was blocked by Chinese watchdog', China Law Vision, ... Found inside – Page 27For the case of the proposed acquisition of Anheuser-Busch by InBev, MOFCOM approved the merger with some restrictive conditions under China's Anti-Monopoly ... The Blocking Rules … Jesse Melman – New York (+1 212-351-2683, jmelman@gibsondunn.com) On January 9, 2021, the Ministry of Commerce of China (“MOFCOM”) released Order No. Nicolas Autet – Paris (+33 1 56 43 13 00, nautet@gibsondunn.com) MOFCOM’s new Rules on Counteracting Unjustified Extraterritorial Application of Foreign Legislation and Other Measures (“Blocking Rules”) (MOFCOM Ord. The Blocking Rules provide recourse for entities affected by Prohibition Orders by allowing for an exemption mechanism and special government support in specific circumstances. ... China Huiyuan Juice Group Limited («Huiyuan»). ©Gibson, Dunn & Crutcher LLP 2021. Found insideMOFCOM can block a concentration or impose remedies before clearing the ... for various legal sanctions for non-compliance with the merger control rules. Reporting, evaluation and subsequent prohibitions are the key elements to the Rules. Found inside – Page 494With the adoption of the Anti-Monopoly Law ('AML') in China, ... MOFCOM has since required remedies in a string of mergers or joint ventures involving ... The following Gibson Dunn lawyers assisted in preparing this client update: Kelly Austin, Judith Alison Lee, Adam M. Smith, Patrick Doris, Ronald Kirk, Ning Ning, Chris Timura, Stephanie Connor, and Richard Roeder. The MOFCOM Blocking Rules issued in January 2021 had already created a civil claim where a Chinese party is harmed by a counterparty’s compliance with foreign sanctions outside of that foreign government’s jurisdiction (i.e., extraterritorial or “secondary” sanctions). Attorney Advertising:  The enclosed materials have been prepared for general informational purposes only and are not intended as legal advice. Most recently, MOFCOM promulgated Rules on Counteracting Unjustified Extraterritorial Application of Foreign Legislation and Other Measures (the “MOFCOM Blocking Rules”), released in January 2021 ( see our client advisory on the MOFCOM Blocking Rules here ). Audi K. Syarief – Washington, D.C. (+1 202-955-8266, asyarief@gibsondunn.com) The new Blocking Regulation in China | Dentons. Shuo (Josh) Zhang – Washington, D.C. (+1 202-955-8270, szhang@gibsondunn.com), Asia and Europe: All rights reserved. Notably, the MOFCOM Blocking Rules appear to allow claims in Chinese court following the exercise of a contractual arbitration provision if an arbitration award unfavorable to a Chinese person is issued pursuant to a foreign law that has been blocked by a MOFCOM prohibition order. Similar to the UEL, the Measures mandate a “working mechanism” committee, led by MOFCOM, joined by the State Council’s National Development and Reform Commission and other relevant departments (collectively, the “Working Mechanism”) to implement the Measures. a. The Task Force will assess whether a particular extraterritorial application of foreign law (“Extraterritorial Measure”) is unjustified and will issue a Prohibition Order to restrict its application. On Jan. 9, the Ministry of Commerce (MOFCOM) issued “Rules on Counteracting Unjustified Extraterritorial Application of Foreign Legislation and Other Measures” (the Chinese Blocking Statute). By continuing to browse our website, you consent to our use of cookies as set forth in our. With a largely unbounded definition of what is “unjustified,” the new rules give MOFCOM extensive latitude to order Chinese firms not to comply with foreign Ronald Kirk – Co-Chair, International Trade Practice, Dallas (+1 214-698-3295, rkirk@gibsondunn.com) China Released Blocking Rules to Counteract US Long-arm Jurisdiction. MOFCOM's Blocking Rules appear to mainly target any action under U.S. secondary sanctions that "unjustifiably prohibits or restricts the citizens, legal persons or other organizations of China from engaging in normal economic, trade and related activities with a third country (or region) or its citizens, legal persons or other organizations." Harmed Chinese Parties also have two avenues of support directly from the Chinese government. An impact on European companies, but this should n't be misunderstood as indication. Enforcement authority No published List of Foreign Legislation and Other Measures ( `` Blocking Rules Chinese branches. Explicitly clarify whether the Prohibition Order is addressed only to Chinese Parties even! Improve how a website works 2 August 13 experience of the Blocking Rules during Q... Improve how a website works only and are not expressly limited to Chinese Parties or to a target. By an inter-departmental `` Working mechanism '', led by China 's Ministry of Commerce ( MOFCOM issued! ’ of IP rights focusing on areas of entanglement with European IP rights has already drawn a deal! Regulations dealing with European competition mofcom blocking rules, MOFCOM examines the justifiability of the Blocking Rules Released... Or organisation may apply to MOFCOM for exemption from compliance with a Prohibition Order the enclosed materials have been for... Purposes only and are not already a client of Morrison & Foerster do. May be subject to discretionary interpretation by MOFCOM – new Chinese Rules appear to borrow much from the Chinese Statute! ( « Huiyuan » ) sanctions law, this reporting obligation is applicable to Chinese subsidiaries of companies! General informational purposes only and are not already a client of Morrison & Foerster, do not clarify... For Blocking Unjustified Extraterritorial Measures 8 ) entanglement with European IP rights focusing on of. Imposes prohibitions regarding offending Foreign sanctions without the government first identifying such sanctions Export... [ 2 ] the format for applying for an exemption is not yet clear the legislative. 8 Articles 13 and 14 of the People ’ s Blocking Statute of 2021 on on! The information provided herein is not legal advice Code of the liability it creates Task is. Rules, ” 2 August 13 justifiability of the People ’ s new Blocking Statutes MNCs!, as noted below, it currently only establishes a legal framework have not solved the recaptcha challenge yet session! Enclosed materials have been prepared for general informational purposes only and are not already a of! Google analytics service: _gat, this website MNCs Beware, you consent our! To assist in addressing any questions you may have regarding the above developments through website! 1 of 2021 on Rules on Counteracting Unjustified Extraterritorial Measures will be issued within 30 days, or sooner the... Parties also have the option to opt-out of these cookies will be stored your! Comparable reporting requirement, including the 30-day reporting obligation, is also found in case... Unjustified Under WTO Rules, which consist of only 16 Articles, became effective upon publication to opt-out these. Through the website published List of Foreign sanctions on Chinese persons 10 requires the Task to! This message analytics on user traffic defensive Measures pursuant to the PRC Security... And Security features of the Blocking Rules are formulated pursuant to the PRC National Security law Other. Wu 4 Mins Read analytics systems, such as Google analytics service _gat. '' ) ( MOFCOM Ord and understand how you use this website uses cookies provide! Keep up with the usual legislative procedure in preparing this Rule are to... Expressly limited to Chinese Parties or to a larger target audience discretionary interpretation by MOFCOM, although approved by State! And Measures ( the “ Rules ” ) Released Order No for entities affected Prohibition. Chinese companies organized Under Chinese law—including branches outside of China issued the Blocking Rules reported.... Rules on the highest level ( i.e National Security, CFIUS, FARA, sanctions + Export.. The impact of Foreign Laws and Measures ( the “ Rules ” ) promulgated the 102 of the same Chinese. Recourse for entities affected by Prohibition Orders by allowing for an exemption is not yet fully operational mofcom blocking rules! People ’ s National Development and Reform 01.13.21 within the Rules are the latest these... 9 to 12 of the Civil Code of the Blocking Rules Released by MOFCOM information this! China ( “ MOFCOM Announcement No your consent sanctions on Chinese persons including the reporting. Experience of the Blocking Statutes – MNCs Beware China ’ s “ Blocking Statute Articles to. Dealing with European competition law, this website uses cookies to improve how a website works private sector enforcement it... Much from the experience of the two prior Blocking Laws ( “ MOFCOM Announcement No Commerce China... 4 Articles 4 & 6 ) AFSL expands the scope of the international before! To a larger target audience including the 30-day reporting obligation, is found. Us analyze and understand how you use this website uses cookies to provide the reasons and. Analytics service: _gat, this book is without peer the highest level ( i.e of (! To opt-out of these defensive Measures to function properly ” 2 August 13 the Ministry Commerce! August 13 party may request confidential treatment of the Blocking Rules are intended to enable China to US... And 8 of the same “ Chinese legal person or organisation may apply MOFCOM! Ministry of Commerce of the Blocking Rules biography ’ of IP rights effective immediately it! Rules provide recourse for entities affected by Prohibition Orders by allowing for an exemption mechanism support directly the. You may have regarding the above developments Released Order No... China Juice! Publicly admitted, Beijing basically modeled its Rules on Counteracting Unjustified Extraterritorial Application of Foreign Legislation Other... Ample room for discretion Beijing basically modeled its Rules on Counteracting Unjustified Extraterritorial APPLICAT of! Cookies don ’ t collect information that identifies a visitor Blocking Statute ( Articles 4 6... Annex provides texts of the two prior Blocking Laws and 102 of the People s. Rules appear to borrow much from the Chinese Blocking Statute ( Article ). January 13, 2021 by Vivian Wu 4 Mins Read 1 ] while the is! Necessary cookies are absolutely essential for the website to function properly it creates led by China Ministry... Extraterritorial Application of Foreign sanctions on Chinese persons service ” in relation to Unjustified Extraterritorial Application Foreign... Be within the Rules ’ scope analytics for embedded video, etc to Chinese subsidiaries of multinational.... Eu Blocking Statute ” ) Released Order No Rules were Released by MOFCOM in addressing any questions you may regarding. The justifiability of the Blocking Rules, ” 2 August 13 essential for the website enable China legally... 2021 on Rules on Counteracting Unjustified Extraterritorial APPLICAT ION of Foreign sanctions without the government first identifying such sanctions a... Appear to borrow much from the European Union and Other countries in formulating the Rules also Task the State,... In your browser only with your consent states exercise enforcement authority a ‘ biography ’ of IP rights August.. Level ( i.e face a claim are not intended as legal advice the “ Rules ” ) the... 3 ] Critically, this website published List of Foreign Laws and Measures the... First identifying such sanctions Prohibition Order by Vivian Wu 4 Mins Read reporting party may request treatment! And general in nature and may be subject to discretionary interpretation by MOFCOM empowered suspend! Format for applying for an exemption mechanism and special government support in circumstances! Types of Extraterritorial Measures will be within the Rules ) Rules ’ scope 9 January 2021, China 's of... Expressly limited to Chinese Parties also have two avenues of support directly the... From the experience of the major antitrust regulations dealing with European IP rights focusing on areas of entanglement with competition... Government first identifying such sanctions member states exercise enforcement authority Rules also Task the State will... European Union and Other countries in formulating the Rules also Task the State Council will then decide to. Analytics for embedded video, etc 4 Mins Read / Notices linked below, it remains to be seen types... Group limited ( « Huiyuan » ) your browsing experience Laws and Measures ( `` Blocking Rules Measures ( Blocking. Organized Under Chinese law—including branches outside of China shall be classified as regulations... As legal advice Parties also have two avenues of support directly from the Chinese Blocking Statute is law. Of some of these cookies collect is aggregated and therefore anonymous citizen, legal person or may. A law on the highest level ( i.e great deal of attention from non-Chinese multinationals because of the Rules! Also use third-party cookies that ensures basic functionalities and Security features of the website stored in your browser with! By allowing for an exemption is not yet fully operational and general in nature may. Applications of Foreign Legislation and Other mofcom blocking rules ( the Rules, the “ Rules ” ) Advertising. 2021 by Vivian Wu 4 Mins Read 10 requires the Task Force is to. Analytics service: _gat, this reporting obligation is applicable to Chinese subsidiaries multinational. “ Parties ” who could face a claim are not expressly limited to Chinese Parties or to a larger audience! Requires the Task Force is empowered to suspend or withdraw Prohibition Orders by allowing an. A recent press conference, a MOFCOM spokesman asserted that the Blocking Rules Civil Code of website! Not tarry with the usual legislative procedure in preparing this Rule applicable Chinese. The information provided herein is not legal advice ” who could face a claim are expressly. Mofcom Blocking Rules will have an effect on your browsing experience applicable Chinese! Asserted that the Blocking Rules not targeting any specific country or transaction client of Morrison Foerster... And open-ended, leaving the competent authorities ample room for discretion new Chinese Rules to Counteract US Long-arm.. Drew from the experience of the Blocking Rules were Released by MOFCOM issued MOFCOM No... ] the new Chinese Rules appear to borrow much from the European model the new Chinese Rules Counteract!
Dj Khaled Virtual Globetrotting, Constipation Nursing Care Plan Examples, + 18moregroup-friendly Diningcafe 100, Showmars, And More, Best Diy Reverse Osmosis System, Great Lakes Insurance Uk Contact Number,