The strategic shift is clear. It is the beginning of a more contested compliance world. For multinational companies, the old safest answer was simple: comply with Washington first. The new reality is more complicated: complying with Washington may now create exposure in China. That is the real significance of China’s blocking law. It turns U.S. sanctions from a one-way command into a two-system legal conflict.
The strategic shift is clear. It is the beginning of a more contested compliance world. For multinational companies, the old safest answer was simple: comply with Washington first. The new reality is more complicated: complying with Washington may now create exposure in China. That is the real significance of China’s blocking law. It turns U.S. sanctions from a one-way command into a two-system legal conflict.
This is to induce those companies to "choose the lesser of two evils".