China strategic use of legal frameworks and lawfare

China is increasingly employing “legal power” and lawfare to protect its national interests and challenge the global influence of the United States and other international bodies. This strategy involves using laws, courts, sanctions, and export controls to reshape international rules.

Initial actions included the Chinese Ministry of Commerce instructing domestic companies to ignore U.S. sanctions against specific refineries and the Ministry of Justice challenging European Union anti-subsidy investigations.

This approach has expanded into extraterritorial legal measures aimed at countering international sanctions and controlling sensitive technologies, such as artificial intelligence. Recent developments include interventions in foreign acquisitions and the implementation of regulations that prevent domestic companies from complying with foreign sanctions. These measures leverage China’s dominance in global supply chains and expand Beijing’s ability to regulate technology movement and impose entry and exit bans under the umbrella of national security.