China Strengthens Legal Framework Against Foreign Sanctions

On June 17, 2026, Vice-Premier He Lifeng announced at the Lujiazui Forum that China will enhance its financial laws to include provisions against unilateral foreign sanctions. This move aims to create a legal shield for Chinese companies facing geopolitical risks, particularly from the US. He emphasized that China does not seek confrontation but will not back down from what it perceives as unreasonable suppression. The draft financial law includes measures to counteract discriminatory actions against Chinese entities. This initiative follows China's first-ever blocking order issued in May 2026, which prohibits compliance with US sanctions related to Iranian oil trade. The announcement comes amid economic challenges, with China's economy showing signs of decline in consumer spending and investment. The new legal measures are part of a broader strategy to fortify China's financial system against external pressures.

Key Points: • China is embedding anti-sanctions provisions into its financial laws. • The new legal framework aims to protect Chinese companies from unilateral foreign sanctions. • This initiative follows China's first blocking order against US sanctions issued in May 2026.