Beijing (AFP)
European companies in China are "in shock" the day after the adoption of a law against foreign sanctions, which risks placing multinationals in a difficult position, the EU Chamber of Commerce said on Friday.
Faced with Western pressure, China on Thursday equipped itself with a vague legal arsenal that legalizes reprisals in the event of foreign sanctions against Chinese individuals or entities.
The text legalizes "the sealing, seizure and freezing of property" of people or companies that would apply sanctions against China.
This law "risks placing European companies in China in an increasingly precarious position", lamented to AFP Joerg Wuttke, president of the EU Chamber of Commerce in China.
The text, which had not been released in advance, was adopted Wednesday at a closed-door meeting of the Standing Committee of the National People's Congress (PNA, the Chinese parliament).
"European businesses are in shock at the lack of transparency and the speed of this process," commented Mr Wuttke.
Beijing has long complained about extraterritorial application of US law through sanctions and trade restrictions.
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Observers fear that with the new law, foreign companies will have to make a difficult choice: comply with US sanctions and risk Chinese retaliation, or vice versa.
Foreign companies find themselves "stuck between a rock and a hard place" and will have to "navigate this new legislative minefield," said Wuttke.
According to him, this new law is not likely to attract new foreign investment in China, foreign companies "already fearing to be pawns that can be sacrificed on the geopolitical chessboard".
"One can really worry about a further destabilization of relations between China and the EU," he said.
In March, Europeans first sanctioned China for the alleged persecution of Uyghur Muslims in Xinjiang, a multi-ethnic region in the country's northwest.
Beijing retaliated in the wake with sanctions against a dozen European personalities.
© 2021 AFP