On June 10, 2021, the Chinese National People’s Congress Standing Committee passed the Anti-Foreign Sanction Law (AFSL), codifying China’s counter to foreign (primarily U.S.) sanctions and export control enforcement, and at the same time raising deep concerns among foreign companies operating in China, as well as foreign investors and trading partners.

The terms of the AFSL are imprecise, allowing the Chinese government to apply the law when and where it sees fit. But China’s obligations under Bilateral Investment Treaties (BITs) may impose at least some limits on the future scope and effect of the AFSL. This article explores a potential defense under the BITs, just as the AFSL takes its place alongside China’s other recently developed export and sanctions enforcement tools, such as the “Unreliable Entity List” and recently passed “blocking rules.”