A weaponized ‘legal toolbox for foreign struggles’ is reshaping Chinese economic relations with the rest of the world
China has accelerated the implementation of an integrated program, founded on Xi Jinping Thought, to weaponise law, with both territorial and extraterritorial effect. Expressly termed “lawfare,” this program seeks to reshape economic relations with the rest of the world, creating a capital market “with Chinese characteristics”.
Analysis by the Washington-based Foundation for Defense of Democracies signals China’s intention. The goal, foreign minister Wang Yi is quoted as saying, is make to “good use of rule-by-law as a weapon and constantly enrich and improve the legal toolbox for foreign struggles” against governments, businesses, and individuals Beijing views as insufficiently deferential.
The central elements are China’s amended Counter-Espionage Law (2023) and new Law on Foreign Relations (2023). The old Counter-Espionage Law focused on unmasking spies. The amended law targets ordinary business practices, such as gathering information on local markets, potential partners, and competitors. While the old law sought to protect “state secrets and intelligence,” the new law adds an all-encompassing new category — “other documents, data, materials, or items related to national security or interests,” which could mean anything.
The effect has been to make potentially radioactive any negative information about China, including its economy.
