China's new rules give the West a new headache
www.dw.com
Beijing now has strong new powers to punish firms for pulling manufacturing out of China. Multinationals are increasingly caught in a web of coercion and complex rules as they try to operate across the US, EU and China.
  • Sepia@mander.xyz
    2·
    1 month ago

    Chinese authorities can now retaliate against foreign firms that move factories to countries like Vietnam or India, or reshore production back home.

    According to the Chinese government, it is now a criminal act if you move your supply chain to out of China.

    Here is a comprehensive report by Safeguard Defenders, “New rules give China more excuses to enforce exit bans on foreigners.”

    Article 16 of the State Council Provisions on Industrial and Supply Chain Security (国务院关于产业链供应链安全的规定) and Article 17 of the Regulations on Countering Improper Extraterritorial Jurisdiction by Foreign States (反外国不当域外管辖条例) both explicitly mention exit bans as one of several actions that can be taken (including fines and criminal prosecution).

    The language of both regulations is expansive and vague. But it appears that companies, and people who work for them, can get in trouble if they:

    • Collect sensitive supply chain data and other information,
    • Take any action that harms China’s supply chains (such as moving business out of China),
    • Do not cooperate with investigations, which may include handing over a company’s own sensitive data, and
    • Follow or help enforce foreign government sanctions or restrictions against China.