All 14 vice-chairpersons of the committee are under US sanctions for passing the National Security Law last year that critics say has crippled political freedoms in Hong Kong. Beijing says it was needed to restore stability in the city.
President Xi Jinping called in November for the ruling Communist Party to use legal means to defend Chinas sovereignty, security and interests against foreign parties.
The NPC said in its annual work report in March that it wanted to upgrade our legal toolbox to address the risks from foreign sanctions and interference.
In January, the Commerce Ministry announced mechanisms to assess if foreign restrictions on Chinese trade and business activities were justified, and for Chinese individuals or companies to sue for compensation in a Chinese court.
The bill underwent a secret first reading in April, and was passed barely two days after NPC announced that it was doing a second reading of the bill. It skipped a third reading normally needed for other bills.
The European Union Chamber of Commerce said its members were alarmed at the lack of transparency about the passing of the bill.
China seems to be in a hurry. Such action is not conducive to attracting foreign investment or reassuring companies that increasingly feel that they will be used as sacrificial pawns in a game of political chess, Joerg Wuttke, the Chambers president, said.
Foreign companies looking to do business in China may find themselves up against increasing scrutiny from regulatory authorities in relation to their operations both locally and abroad, said Shaun Wu, a partner at law firm Paul Hastings.
Chinese experts say Beijing is simply taking a page from the playbooks of the US and EU, which in recent years have passed various acts to serve as a legal basis for their engagement with China.
China previously had neither the economic power nor the political will to use legal means to retaliate against US sanctions. It now has both, said Wang Jiangyu, a law professor at City University of Hong Kong.
Cooperation is the best option but the US doesnt want it. So retaliation, such as with this new law, is the second-best option. Sucking it up is the worst, he said.
Reuters