CIBEL Co-Director Associate Professor Weihuan Zhou was interviewed on Monday 3 July by BBC News on China’s new foreign relations law and what this means for foreign businesses in China.
China’s new foreign relations law provides rules and regulations for developing relations with the rest of the world, with a strong focus on upholding the multilateral trading system, opposing protectionism and enabling China to take restrictive measures against nations that endanger China’s national and economic security. Associate Professor Zhou stated that the laws were a defensive, not proactive, response to the rising geopolitical tensions on the international scene and particularly US actions against China.
Associate Professor Zhou emphasised that while China’s new law does provide a high-level legislative framework to strengthen China’s power as a political entity on the global stage, it should not unnecessarily raise alarm bells for foreign businesses, individuals and other stakeholders wishing to operate in China.
For foreign entities and businesses, Associate Professor Zhou explained that the law indicates that while China will take action to protect its national sovereignty, security and developing interests, it is does not imply a more assertive Chinese foreign policy. He said:
“I don’t think foreign organisations, individuals and other stakeholders should feel uncertain or even panic about this legislation and what it may imply. Through this legislation, China clearly intends to show its commitments to openness to international cooperation and its commitments to international obligations. What’s important is for business and other entities and other stakeholders to understand what China is really concerned about in relation to national sovereignty, security and developing interests.”
In short, the key takeaways from Associate Professor Zhou’s interview were:
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Don't overreact
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Be aware of positive message
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A shift has occurred from a defensive to a proactive approach to ensure China’s security and development interests
To learn more about China’s new foreign relations law, you can click here.
Associate Professor Weihuan Zhou’s research may be found at SSRN, LinkedIn and Twitter.