Legal and Policy Countermeasures
Under the Anti-Foreign Sanctions Law (AFSL), China has established a robust legal framework to respond to foreign sanctions. In March 2025, new AFSL regulations were enacted, enabling authorities to implement asset freezes and impose restrictions on business operations for entities deemed to be undermining national interests.
Promotion of the Dual Circulation Strategy
China continues to prioritise its “dual circulation” strategy, which aims to reduce reliance on external demand by enhancing domestic consumption and driving innovation. This model focuses on strengthening internal economic resilience while remaining engaged with global trade, helping cushion the economy against external shocks.
Through these comprehensive and multi-layered initiatives, China is actively adapting to a shifting global trade environment, working to safeguard the stability of its export-driven economy amid deepening trade frictions with the US.