In the News: First Anti-Foreign Sanctions Judgment; Offshore Trusts Taxation; and China Banks Launch Repo Rate Loans

First Chinese judgment rejects foreign sanctions on Chinese party as defense for contract breach | Chinese tax-residents must pay income tax on gains of assets transferred to offshore trusts | Three major Chinese banks issue first loans using interbank repo rates as a pricing benchmark

By Jeffrey Tse

In the News: First Anti-Foreign Sanctions Judgment; Offshore Trusts Taxation; and China Banks Launch Repo Rate Loans

Court Applies Anti-Foreign Sanction Law For First Time

A Chinese court applied the Anti-Foreign Sanctions Law (AFSL) for the first time to reject a foreign party’s defense to a breach of contract.

On June 24, China’s Supreme People’s Court released six representative maritime cases of 2025, one of which involved the application of the AFSL for the first time by a Chinese court since the law was enacted in 2021.

Exclusive Content

A Subscription is Required to Access this Content

Subscribe to China Law & Practice today for:

Access to 3000+ essential documents, including key PRC laws translated into English
Newsletters with business-critical and sector-specific updates
Premium mobile access with timely analysis on China’s fast-changing market

Already a Subscriber? Log In Here

Questions? Contact us at [email protected] | 1-855-808-4530 (Americas) | 44(0) 800 098 386009 (UK & Europe)