On 19 Mar. 2025, during the 2025 National Two Sessions, China’s Supreme People’s Court’s (SPC) work report highlighted a landmark case—China’s first tort lawsuit under the PRC Anti-Foreign Sanctions Law. This case marks the first time that a Chinese court accepted the case under this law and facilitated a settlement, allowing a domestic company to recover over CNY 84 million in construction payments.
The case originated in September 2023, when a Chinese company contracted with a European company to build and install a water treatment module for a Floating Production Storage and Offloading (FPSO) vessel. The project was completed and delivered. However, in early 2024, the Chinese company was added to a third country’s Specially Designated Nationals (SDN) list. The European company then invoked sanctions to withhold payment and cut off communications.
Faced with unfavorable overseas arbitration clauses, the Chinese company invoked the PRC Anti-Foreign Sanction Law as a legal basis for relief and filed a lawsuit in China. On 18 Sept. 2024, the court approved an application of maritime preservation. The case was formally accepted on October 11 and resolved through mediation within 39 days, ensuring full payment.
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