China Activates MOFCOM Regulation 21: Companies Based in China Could Be Required to Reject Extraterritorial Demands from EAR, OFAC, and FCPA

China reportedly activated a new regulatory instrument, referred to as MOFCOM Regulation 21, on 2 May 2026. Described in practice as an updated Blocking Statute, the measure was reported by law firm Mayer Brown from its Shanghai office and has not yet been verified against the official Chinese government gazette (商务部公告). According to available information, the regulation requires companies and individuals based in China to notify the Ministry of Commerce (MOFCOM) whenever they receive demands arising from foreign laws that China classifies as illegitimate extraterritorial measures. MOFCOM would then be empowered to determine that such demands need not be complied with.

The regulation also enables affected parties to bring compensation claims before Chinese courts against those who attempted to impose such demands. The foreign legislative frameworks most directly in tension with this mechanism are the Export Administration Regulations (EAR), administered by the Bureau of Industry and Security (BIS); financial sanctions enforced by the Office of Foreign Assets Control (OFAC) under the U.S. Treasury; and the Foreign Corrupt Practices Act (FCPA).