src='https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js?client=ca-pub-2513966551258002'/> Rightways: Sanctions Infolinks.com, 2618740 , RESELLER

Pages

Share This

Showing posts with label Sanctions. Show all posts
Showing posts with label Sanctions. Show all posts

Saturday, June 12, 2021

China’s newly passed Anti-Foreign Sanctions Law to bring deterrent effect against Western hegemony

  https://youtu.be/lP-u9Lmubog

China's Anti-Foreign Sanctions Law will surely become a pointed weapon to counter foreign sanctions

 

美推涉华法案打压中国 中方:不得人心 注定失败!20210609 |《今日关注》 https://youtu.be/VOPFUhKrzfk 

 

https://youtu.be/SLoPPxpOjMM

China's New Law To Counter US, EU Sanctions May Also Block Covid-19 Origin Investigation 

 Deportation, denying entry and freezing assets among countermeasures to stop long-arm jurisdiction 

Photo: Xinhua 

 

Top lawmakers in China on Thursday voted to pass the highly expected Anti-Foreign Sanctions Law, providing a comprehensive legal basis for blocking illegal foreign sanctions and preventing Chinese individuals and entities from suffering the damage resulting from such illegal sanctions. The new law will also offer sufficient legal foundation for taking an equal position with the West by imposing necessary countermeasures, Chinese legal experts said.

The Standing Committee of the 13th National People's Congress (NPC) convened its 29th session on Monday in Beijing, which was scheduled to conclude on Thursday, and draft version of the anti-foreign sanctions law was put to review for the second time on Monday. According to the rules and procedures of the legislative body, the draft law in the agenda of the NPC Standing Committee meeting should generally be reviewed three times before being put to a vote. However, if there is consensus on all aspects of the draft law, it can be reviewed twice.

The highly expected law, which is considered an effective and strong legal tool to stop the long-arm jurisdiction of foreign countries, includes 16 articles, stipulating principles of punishment for violating the law, and major authorities in enforcing it. Relevant authorities under the State Council - China's cabinet - can directly or indirectly participate in formulating, deciding and enforcing a countermeasure list targeted at individuals and entities that have taken discriminatory measures against Chinese citizens and organizations under the pretext of their domestic laws.

Targeted groups of the countermeasure list can be expanded to their relatives, spouse, the organizations that are led by these targeting individuals or operated by them, according to the law, which lays out a number of measures, including refusing to issue visas or denying entry, deportation, freezing properties and restricting relevant transactions and cooperation.

If any organization or individual assists foreign countries to take discriminatory measures, Chinese citizens and organizations can file a lawsuit with the people's court in line with the law and to stop infringement as well as seek compensation for losses, according to the law.

China also has set up a working mechanism in responding to foreign sanctions, which also coordinates relevant work, including information sharing. And authorities such as the Chinese Foreign Ministry or the State Council or others are responsible for releasing the list of countermeasures, which could be suspended or changed if necessary.

When the Legislative Affairs Commission of the NPC Standing Committee gave the example about who would be placed on the target of China's Anti-Foreign Sanctions Law, the spokesperson of the commission said that certain Western countries, under the pretext of Tibet, Hong Kong, Taiwan and the South China Sea, together with the COVID-19 pandemic, interfere in China's internal affairs, which are bullying tactics by imposing the so-called sanctions on Chinese government officials, as well as individuals and entities from those countries with misdeeds, would face countermeasures, which is seen as "having a taste of their own medicine."

"The law precisely and effectively targets those who have taken unilateral sanctions in hurting China's interests, and this targeted group can be expanded to their relatives or organizations, which would have strong deterrent effect," Huo Zhengxin, a law professor at the China University of Political Science and Law, told the Global Times on Thursday.

And besides detailed countermeasures, the law grants authorities flexibility to choose which measures to use to hit back, especially when measures fit their needs, Huo said.

Legal experts believed that the Anti-Foreign Sanctions Law, the first of its kind in China, will provide strong legal support and guarantees for the country against unilateral and discriminatory measures imposed by foreign countries, will also have a deterrent effect in the face of Western-led hegemony and demonstrate the collective determination of Chinese decision-makers in safeguarding China's core interests.

Compared to the previous countermeasures issued by administrative institutions, the law underscores in a more comprehensive and systematic way the Chinese government's attitude on the legal aspect when it confronts US government that has abused sanctions or long-arm jurisdiction to severely damage China's sovereignty, security and development interests, some legal experts who took part in the consultation process for the law told the Global Times. The anti-foreign sanctions law will also enable China to strike a balance between countermeasures and negotiations in fixing divergences. 

China's list of sanctions against Western forces over their meddling in China's domestic affairs related to HK, Taiwan and Xinjiang. Graphic: Xu Zihe and Feng Qingyin/GT

Necessary, timely move

The US government has been imposing sanctions on a growing number of Chinese entities such as high-tech firms Huawei and ZTE over the so-called national security risks, and sanctioned a number of senior Chinese officials under the US' so-called Xinjiang and Hong Kong bills last year. In the eyes of legal experts, these have become regular moves for the US government in implementing illegal sanctions and carrying out long-arm jurisdiction against China. The Anti-Foreign Sanctions Law has also become a timely response to those unilateral moves, which may prompt more countries to follow suit.

The latest legislative progress was also in line with the top legislature's annual work schedule, unveiled in March, which indicated that China will enhance legislation in foreign-related fields, when Li Zhanshu, chairman of the Standing Committee of the NPC, vowed to focus on moves against sanctions and interference and countering long-arm jurisdiction, as well as enriching the legal "toolbox" for coping with foreign-related challenges and preventing risks.

The law could have an influence in two fields - blocking illegal sanctions imposed by other countries and the damage brought about by those sanctions; and taking countermeasures against these sanctions, Tian Feilong, a legal expert at Beihang University in Beijing, told the Global Times on Thursday.

In response to the increasing unilateral moves made by the US government, Chinese authorities have also taken corresponding countermeasures since September 2020. For example, China's Ministry of Commerce (MOFCOM) unveiled the provisions of China's unreliable entity list, which has been viewed by some as a measure by Beijing to counter the US crackdown on Chinese companies. It also issued a new order on January 9 adopting necessary countermeasures against the unjustified extraterritorial application of foreign legislation.

China's Foreign Ministry also announced 11 rounds of countermeasures over Western countries' interference in China's internal affairs since last December such as Xinjiang and Hong Kong by sanctioning a number of NGOs, anti-China politicians, arms producers and entities, as well as lawmakers who helped spread lies about those matters.

"Previous sanctions are fragmented and without sufficient legal basis, and may incur negative feedback due to lack of sufficient legal basis. Now, we have complete legal basis, offering us the same position as the West in taking countermeasures," Tian said, noting that it will also help integrate previous resources and forms to make China's countermeasures against foreign sanctions more systematic, scientific and powerful.

Common practice

It's also common practice for some Western countries to formulate similar laws in blocking foreign sanctions or opposing foreign interference. For example, the blocking statute, adopted in 1996, is an important achievement of unified EU action to protect EU operators, whether individuals or companies, from the extraterritorial application of third country laws, according to the EU website.

And an updated version of the blocking statute was implemented in 2018 to mitigate their impact on the interests of EU companies doing legitimate business in Iran.

Russia also passed a law in June 2018to counter the unfriendly behavior of the US and other countries to protect the interests, security, sovereignty and territorial integrity, as well as the rights of its citizens immune to the unfriendly behavior of the US.

When asked whether the law would affect China's relations with foreign countries, Wang Wenbin, spokesperson of the Chinese Foreign Ministry, said at a routine press conference on Thursday that there is no need to worry about that.

"It's necessary for China to formulate the Anti-Foreign Sanctions Law, as the law provides a strong legal basis and support for China to counteract foreign discriminatory measures," Wang said.

The spokesperson of the Legislative Affairs Commission of the NPC Standing Committee also said the law won't have any impact on China's continuous opening-up regarding economic development, as it has come up with a series of measures to facilitate foreign investment.

The main purpose of China's Anti-Foreign Sanctions Law is to authorize Chinese administrative agencies and judicial institutions to implement sanctions, and if there's more demand in the practice, top authorities such as the State Council and the Supreme Court can issue corresponding detailed administrative regulations and judicial interpretations based on the authorization, and gradually refine a more specific legal system, Huo told the Global Times.

Some senior officials, such as Carrie Lam, chief executive of the Hong Kong Special Administrative Region, hailed the law. Lam said the law will give the US and other countries "a taste of their own medicine," because a number of central government and HKSAR government officials have been sanctioned by the US for the national security law for Hong Kong implemented in 2020.

"The HKSAR government lacked the resources to fight those sanctions in the past. With the implementation of the Anti-Foreign Sanctions law, they have the top authority's legal support on their backs," Tian said, noting that whether including the law into Annex III of the Basic Law or enabling the HKSAR government to revise or work on relevant anti-sanction local laws are both part of the consideration. 

Source link 


RELATED ARTICLES
 
'The Last G7': Satirical cartoon mocking bloc's attempt to suppress China goes ... A Chinese cartoonist's political satire, which mocked the Group of Seven (G7) members that attempt to suppress China, went viral . 

G7 communiqué makes a show but Chinese don't buy it The Group of Seven (G7) summit ended on Sunday. After the meeting, the countries issued a communiqué, which openly criticized China and mentioned issues related to China's Xinjiang, Hong Kong and Taiwan. The communiqué also mentioned opposition to “forced labor” and "unilateral attempts to change the status quo” in the East and South China Seas. Attitudes were expressed in different degrees of tone, with some directly naming China and others without calling China's name but making the country the unmistakable target. It has been the most systematic condemnation against and interference in China by major Western powers

 

Saturday, June 27, 2020

Break free of US dollar hegemony: What’s next?

The dollar is central to the global monetary system – used worldwide as a unit of account, store of value and medium of exchange. Most commodity and forex contracts are denominated in it. It represents more than one-half of all cross-border interbank claims (a proxy for international payments). That’s five times US share of world goods imports, and three times its share of exports. About two-thirds of world reserves is held in US dollars.
https://youtu.be/kWNBDSj9O_I

https://youtu.be/jsDwMGH5E8U

Warning : China Started Dumping US Debt -- End Game for The Dollar !


https://youtu.be/rRFqy08Wnrg

THE END OF THE DOLLAR STANDARD | A WARNING FROM PETER SCHIFF


https://youtu.be/MeRWfRZp_rg

The yuan’s stability is partly by design, and by good luck; backed by foreign exchange reserves held steady at US$3.1 trillion since mid-2016.


TODAY, the world’s financial rhythm remains American. The US dollar assumed the role of the world’s dominant reserve, payment and settlement currency after WWII. The country’s position as the sole financial superpower gives it extraordinary influence over the destinies of nations.

For 70 years, the United States has used this power rather routinely, as a matter of reality. Of late, however, it has been engaged in “financial warfare” in the service of its foreign policy. This has prompted nations to “break free” of US dollar hegemony, including preventing “US sanctioned nations” free access to US dollar-based financial system with devastating impact.

The dollar is central to the global monetary system – used worldwide as a unit of account, store of value and medium of exchange. Most commodity and forex contracts are denominated in it. It represents more than one-half of all cross-border interbank claims (a proxy for international payments). That’s five times US share of world goods imports, and three times its share of exports. About two-thirds of world reserves is held in US dollars.

It is the preferred currency of central banks and capital markets (accounting for 65% of global securities issuance). The irony is people rushed to buy dollars during the subprime crash, even though Wall Street caused it. They did so again in March this year despite US bungled response to Covid19. The global finance plumbing is US dolarbased – most international transactions are ultimately cleared in US dollars through SWIFT (banks’ main cross-border messaging system) and CHIPS (Us-centric clearing house network) through New York by US “correspondent banks.” Denied access to this infrastructure, the institution is isolated and financially crippled. The United States began flexing its financial muscles (including imposing hefty penalties) after the terrorist attacks of September 2001.

Trump has since “weaponised” it to a new level – to-date, it has over 30 active financial and trade-sanctions programs. Early this year, it used this dominance to cut-off support to the Iran and Iraq regimes, adversely affecting their use of oil revenues.

This use of the dollar to extend its policy reach is “an abuse of power,” i.e. bullying; Russia refers to its use, a “political weapon.” Even allies (EU, Japan, UK) are concerned Trump is undermining US role in maintaining orderliness in global commerce and finance. There is already widespread talk to “dethrone” the US dollar, through the dedollarisation of assets; more use of domestic currencies in its trade workarounds and swaps; and new banking payments mechanisms and digital currencies.

Also, nations have expanded settlement of bilateral trade in their own currencies, or gold; even barter. Russia has gone the furthest, including dedollarising parts of its financial system; reducing US dollar share of its foreign reserves (40% to 24%); cutting its bank’s holdings of US dollar Treasuries to under Us$10bil from Us$100bil; bringing down its exports denominated in US dollar to 62%; and shifting US dollar trade with China and India to non-us dollar settlements; and denominating over 40% of its crude oil tenders in euros.

Like Russia, China has begun to set-up “building blocks” to become more autonomous, including a yuan-denominated crude oil futures contract (“petroyuan”) on the Shanghai exchange. US allies are flirting with it, too. But, EU first has to reform the inner workings of the euro and complete work on banking union, fiscal integration, etc., before it is ready to create a global electronic invoicing euro currency.

Reserves option

US dollar’s role as a reserve currency point to three distinct benefits: (i) lower transactions cost; (ii) macroeconomic policy flexibility, including foreign financing of its deficits; and (iii) leverage to benefit allies. Of course, it carries costs: (a) tends to hurt exports by being strong and stable; (b) overhang of debt overseas opens domestic economy as hostage to sudden capital movements; and (c) needs to bail-out the system.

That’s why the UK, Japan and Germany shied away. However, because the world has changed, EU has since started to push for a stronger international role for the euro. But becoming a serious reserve currency requires: (a) large, deep and liquid capital markets; (b) a secure bonds infrastructure, especially in government bonds; (c) wide use in world trade; and (d) a big economy that’s integrated into global markets.

Without fiscal union, EU lacks a supranational, liquid euro bond; its capital markets are not robust enough – a real banking union would help. Euro’s share of global reserves is down to 20%. Russia also tried – cuts US dollar share of its reserves to 24%. Issues most debt in roubles and euro; only 60% of its exports is settled in US dollars, and 40% of its oil sales contracts is denominated in euros. It has still a long way to go.

China had longed wish to internationalise. But, its capital controls remain a serious problem: it limits how much outsiders can access its currency. In 2017, Bond Connect was launched – allowing foreigners to invest in offshore bonds through Hong Kong, and scrapped investment quotas.

China has since made good progress: (i) offshore yuan deposits are rapidly rising; (ii) issues of yuan “dim-sum” bonds are getting popular; (iii) boom in forex transactions suggests growing usage, especially in hubs like Hong Kong, London, New York and Paris; (iv) more offshore investment products are denominated in yuan; and (v) Hong Kong today lists ETFS, gold futures and property investment trusts in addition to Chinese equity. China’s advances are global: it has a vast global trade and investment network; Chinese FDI is mainly in yuan; it settles 15% of its foreign trade in yuan. Today, more globally yuan payments are processed by banks.

One-fifth of European trade with China is settled in yuan, as is 55% of payments among them. Since 2018, yuan-denominated oil futures were launched in Shanghai, as are margin deposits on iron ore futures in Dalian. China’s commodity exchange is emerging. Most of all, central banks are warming up to the yuan – since inclusion in IMF’S SDR (a basket of five elite currencies), its share of global reserves has risen to 2.1%;

China has already signed currency swap arrangements with over 60 nations. Today, the “yuan bloc” accounts for 30% of global GDP – second only to US dollar (at 40%). China opened up its US$13 trillion bond market (world’s second largest), which accounts for 51% of all bonds issued by EMES.

Foreigners now hold 3% of this market and 9% of its government bonds. Its main attraction: good yields and diversification benefits. Further, the yuan has been among the most stable currencies in the world since mid-2016. Its real effective exchange rate – against the basket of currencies of its trading partners, adjusted for inflation – has risen by just 0.2% over the past four years. The yuan’s stability is partly by design, and by good luck; backed by foreign exchange reserves held steady at US$3.1 trillion since mid-2016.

New initiatives

US geopolitical rivals’ desire to escape the dollar dominance is real. In designing its new e-yuan, China wants a head start on the dollar; it is reported to be considering creating a common cryptocurrency with other BRICS nations (Brazil, Russia, India and South Africa). Similarly, on its part, EU is determined to encourage its members to eliminate “undue reference” to US dollars in payments and trade invoicing.

EU’S main initiative has involved Iran. It tried to create a way for its banks and firms to trade with it through Instex (a clearing house created for this purpose by Britain, France and Germany, with European Commission’s support) by-passing US dollars or SWIFT.

The stuttering performance of Instex reflects the sheer scope of the dollar reach: US claims jurisdiction if a transaction has any American “nexus,” even though not denominated in dollars. Despite this, more EU states are determined to join Instex. It’s EU’S intention to expand its financial reach – through a network of global electronic central bank digital monies that serves as a global invoicing currency, excluding US dollars. Also, its capital market needs greater depth and liquidity, key factors in choosing a currency for commerce. As Trump continues to use sanctions aggressively, efforts to circumvent them will accelerate. The reality is that US does not have a monopoly on financial ingenuity.

What then are we to do

There’s no question the world urgently needs a multinational currency reserve regime. The dollar is being weaponised to bully. This won’t do. Nations, including US allies, are looking for and working on an effective but viable and sustainable option. This will take time. The search is still very much work-in-progress. Euro and e-yuan look promising. But they have a way to go. Like it or not, any e-currency has to be central bank-backed to be credible, and where the public can readily access it.

Still, central banks face hurdles in offering dedicated digital currencies and related accounts to the public. Understandably, many central banks have been hesitant in creating digital currencies. As I see it, they remain worried on how to monitor transactions to prevent fraud and hacking, and whether digital currencies should be linked to interest rates. It’s a responsibility, I think, central banks really don’t want to take-up.


By Lin See Yan, Kuala Lumpur, June 22, 2020

Former banker, Harvard educated economist and British chartered scientist, Prof Lin of Sunway University is the author of “Trying Troubled Times Amid Trauma &Tumult, 2017–2019” (Pearson, 2019). Feedback is most welcome.

Source link