How many firms will be kicked out of China for failing to comply with Donald Trump’s travel ban? The country has finally imposed a raft of new measures to punish companies that do business with the United States—and some key local manufacturers aren’t happy.
China’s State Administration of Foreign Trade, or SAFT, warned on Wednesday that it will start fining Chinese and foreign firms if they violate U.S. immigration laws. Since Trump’s revised travel ban took effect Monday, the country has banned American citizens from entering to visit the U.S. under any circumstances.
The agency also said foreign business leaders will be banned from entering China and will face unspecified unspecified fines for violating the ban, although a spokesman insisted they won’t be detained. It said companies would be expelled from China’s do-not-abide list and will forfeit U.S. contracts worth more than $25 million.
The ramifications of both of these plans will likely be wide-ranging, based on the extent of the sectors affected, the extent of any lost revenue and the economic scale of the companies that might be barred from the mainland—particularly for those that ship out parts to U.S. factories.As far as potential complications for U.S. multinationals that sell to China, the company spokesman said SAFT “will monitor the actual impact of these two measures.” The person declined to identify which specific firms would be sanctioned, but said the penalties imposed would be “appropriate.”
China’s anti-corruption and anti-money laundering agency has introduced similar measures against American companies in the past, and SAFT says it will continue to inform businesses of the enforcement actions until the ban expires. The chairman of the U.S. Travel Association cautioned that the Chinese travel ban was also on the flight to flee restrictions enacted by President Trump’s predecessors.
China has been subject to a number of development-related measures under its attempt to eradicate what one government official dubbed “the Bo Xilai scandal.” The scandal involves former party leader Bo Xilai’s campaign to oust his conservative political opponent Gu Kailai in a 2012 murder trial in which the women admitted to slitting Gu’s wrists. And American insurers have faced questions regarding their relations with China since the way in which they insured their business in the first place.