The Ministry of Commerce (MOFCOM) released Order No. 1 of 2021 on
Rules on Counteracting Unjustified Extraterritorial Application of Foreign Legislation and Other Measures (the Rules) effective on January 9, 2021. The Rules, which are based upon the
National Security Law, have 16 articles in total and seek to prevent companies from complying with foreign laws prohibiting transactions with Chinese firms. It is our belief that the Rules are a direct response to the ongoing sanctions imposed upon Chinese tech companies, particularly to U.S. actions against Chinese companies including Huawei and Tencent, despite the official Ministry of Commerce claims that the Rules are not directed at a specific country or specific industry.