A Study on the Conflict of Jurisdiction Between Anti-Sanction Recovery Litigation and International Commercial Arbitration
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A Study on the Conflict of Jurisdiction Between Anti-Sanction Recovery Litigation and International Commercial Arbitration

Jiawei Han 1*
1 University of International Business and Economics
*Corresponding author: insilencebrooke@gmail.com
Published on 6 August 2025
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LNEP Vol.110
ISSN (Print): 2753-7056
ISSN (Online): 2753-7048
ISBN (Print): 978-1-80590-297-3
ISBN (Online): 978-1-80590-298-0
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Abstract

Article 12 of the Anti-Foreign Sanctions Law of the People's Republic of China grants Chinese citizens and organizations the right to seek judicial remedies by initiating legal proceedings in a People's Court when their rights and interests are infringed upon by discriminatory restrictive measures imposed by foreign states. Although the law stipulates that affected parties may bring an action for recovery under anti-sanctions, the provision's general and abstract nature presents certain issues in its practical application that further analysis and discussion are needed. Moreover, such litigation is not the sole means of recourse available to the parties; in practice, they may also agree to submit their disputes to arbitration. However, given that sanction measures often implicate public interest and national sovereignty, uncertainty exists as to whether an arbitral tribunal may, according to an arbitration agreement, adjudicate such disputes. With neither current international law nor domestic legislation offering explicit guidance on this conflict, this paper argues that in instances where a conflict arises between litigation jurisdiction and an arbitration agreement, precedence should be given to litigation jurisdiction. This approach facilitates the convenient resolution of disputes in a manner consistent with the underlying objectives of anti-sanction recovery actions.

Keywords:

anti-foreign sanctions law, recovery litigation, jurisdiction conflict

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Han,J. (2025). A Study on the Conflict of Jurisdiction Between Anti-Sanction Recovery Litigation and International Commercial Arbitration. Lecture Notes in Education Psychology and Public Media,110,56-63.

References

[1]. Tao Du and Ziwen Ye. (2023) .The Impact of the Economic Sanctions on International Arbitration. International Law Review of Wuhan University, 3, 69-84.

[2]. Jiachen Liu. (2024) .Situational Analysis of The Application Requirements Of Article 12 of China's Anti-Foreign Sanctions Law. Journal of Henan University of Economics And Law, 5, 69-86.

[3]. Peter Wallensteen. (2000). A Century of Economic Sanctions: A Field Revisited Uppsala Peace Research Papers, 1, 1-23.

[4]. Eric De Brabandere and David Holloway. (2016) .Sanctions and International Arbitration. Research Handbook on Sanctions and International Law, 304-329.

[5]. Yonghong Yang and Yuntao Yang. (2023). On Torts and Liability Under Article 12 Of China's Anti-Foreign Sanctions Act. Journal Of International Economic Law, 2, 139-156.

[6]. OHCHR. (2017) Report On the impact of the Gulf Crisis on human rights. Retrieved from https: //www.nhrc-qa.org/storage/news/2018/01/OHCHR-TM-REPORT-ENGLISH.pdf

[7]. Surya P. Subedi. (2021) .Conclusions: The Current Law on Unilateral Sanctions, Remedies Against Unlawful Use Of Such Sanctions And Recommendations, Hart Publishing, 329.

[8]. Georges Van Hecke, (1984). The Effect of Economic Coercion on Private Relationships. Revue Belge de Droit International, 121-130.

[9]. William S. Dodge, (2008) . The Public-Private Distinction in the Conflict of Laws. Duke Journal of Comparative & International Law, 18, 371-394.

[10]. Supreme People's Court, (1998) . Gazette of the Supreme People's Court of the People's Republic of China, Retrieved from http: //gongbao.court.gov.cn/Details/478228621014b9959bed16de65b582.html?sw=

[11]. The Supreme People's Court. (2004) Official Reply of the Supreme People's Court to the Request for Instructions on the Case of Objection to Jurisdiction in the Tort Dispute between Dynasty Engineering Co., Ltd., Orona S. Coop. of Spain, and Guangdong Orona Elevator Co., Ltd., Retrieved from https: //www.faxin.cn/v2/flfg/gjfl/content.html?gid=A118048& highlight=%5B2003%5D%E6%B0%91%E5%9B%9B%E4%BB%96%E5%AD%97%E7%AC%AC%2B31%2B%E5%8F%B7

[12]. The Supreme People's Court. (2005) .Official Reply of the Supreme People's Court to the Request for Instructions on the Objection to Jurisdiction in the Case of the Civil Tort Compensation Dispute between Plaintiff Bestard (USA) Enterprise Co., Ltd. and Defendants Anhui Hotel, He Zongkui, and Zhang Fucheng, and Third Parties Anhui Jinchen Hotel Management Co., Ltd. and the Liquidation Committee of Sino-US Joint Venture Anhui Hotel Co., Ltd., Retrieved from https: //www.faxin.cn/v2/flfg/gjfl/content.html?gid=A108551& highlight=%E7%99%BE%E4%BA%8B%E8%BE%BE%E6%A1%88

[13]. Bank Melli Iran v Telekom Deutschland GmbH, retrieved from https: //curia.europa.eu/juris/liste.jsf?num=C-124/20

[14]. Parsons & Whittemore Overseas Co. v. Societe Generale de L'Industrie du Papier (RAKTA), retrieved from https: //newyorkconvention1958.org/index.php?lvl=notice_display& id=714

[15]. Yongliu zheng.(2013). The Analysis of Public Interest Clauses in Chinese Public Law. Zhejiang Social Sciences, 10, 53-60.

[16]. Anna Segall, (1998). Collective economic sanctions and international humanitarian law — An enforcement measure under the United Nations Charter and the right of civilians to immunity: An unavoidable clash of policy goals? International Review of The Red Cross, 836, 763-784.

[17]. Weiyang tang and Juanqi Cai.(2025) .The Legislation and Practice Of The Anti-Foreign Law. Junhe Law review, Retrieved from https: //www.junhe.com/legal-updates/2673

[18]. Provisions on the Implementation of the Anti-Foreign Sanctions Law of the People's Republic of China, Retrieved from https: //www.gov.cn/zhengce/content/202503/content_7015400.htm

References

[1]. Tao Du and Ziwen Ye. (2023) .The Impact of the Economic Sanctions on International Arbitration. International Law Review of Wuhan University, 3, 69-84.

[2]. Jiachen Liu. (2024) .Situational Analysis of The Application Requirements Of Article 12 of China's Anti-Foreign Sanctions Law. Journal of Henan University of Economics And Law, 5, 69-86.

[3]. Peter Wallensteen. (2000). A Century of Economic Sanctions: A Field Revisited Uppsala Peace Research Papers, 1, 1-23.

[4]. Eric De Brabandere and David Holloway. (2016) .Sanctions and International Arbitration. Research Handbook on Sanctions and International Law, 304-329.

[5]. Yonghong Yang and Yuntao Yang. (2023). On Torts and Liability Under Article 12 Of China's Anti-Foreign Sanctions Act. Journal Of International Economic Law, 2, 139-156.

[6]. OHCHR. (2017) Report On the impact of the Gulf Crisis on human rights. Retrieved from https: //www.nhrc-qa.org/storage/news/2018/01/OHCHR-TM-REPORT-ENGLISH.pdf

[7]. Surya P. Subedi. (2021) .Conclusions: The Current Law on Unilateral Sanctions, Remedies Against Unlawful Use Of Such Sanctions And Recommendations, Hart Publishing, 329.

[8]. Georges Van Hecke, (1984). The Effect of Economic Coercion on Private Relationships. Revue Belge de Droit International, 121-130.

[9]. William S. Dodge, (2008) . The Public-Private Distinction in the Conflict of Laws. Duke Journal of Comparative & International Law, 18, 371-394.

[10]. Supreme People's Court, (1998) . Gazette of the Supreme People's Court of the People's Republic of China, Retrieved from http: //gongbao.court.gov.cn/Details/478228621014b9959bed16de65b582.html?sw=

[11]. The Supreme People's Court. (2004) Official Reply of the Supreme People's Court to the Request for Instructions on the Case of Objection to Jurisdiction in the Tort Dispute between Dynasty Engineering Co., Ltd., Orona S. Coop. of Spain, and Guangdong Orona Elevator Co., Ltd., Retrieved from https: //www.faxin.cn/v2/flfg/gjfl/content.html?gid=A118048& highlight=%5B2003%5D%E6%B0%91%E5%9B%9B%E4%BB%96%E5%AD%97%E7%AC%AC%2B31%2B%E5%8F%B7

[12]. The Supreme People's Court. (2005) .Official Reply of the Supreme People's Court to the Request for Instructions on the Objection to Jurisdiction in the Case of the Civil Tort Compensation Dispute between Plaintiff Bestard (USA) Enterprise Co., Ltd. and Defendants Anhui Hotel, He Zongkui, and Zhang Fucheng, and Third Parties Anhui Jinchen Hotel Management Co., Ltd. and the Liquidation Committee of Sino-US Joint Venture Anhui Hotel Co., Ltd., Retrieved from https: //www.faxin.cn/v2/flfg/gjfl/content.html?gid=A108551& highlight=%E7%99%BE%E4%BA%8B%E8%BE%BE%E6%A1%88

[13]. Bank Melli Iran v Telekom Deutschland GmbH, retrieved from https: //curia.europa.eu/juris/liste.jsf?num=C-124/20

[14]. Parsons & Whittemore Overseas Co. v. Societe Generale de L'Industrie du Papier (RAKTA), retrieved from https: //newyorkconvention1958.org/index.php?lvl=notice_display& id=714

[15]. Yongliu zheng.(2013). The Analysis of Public Interest Clauses in Chinese Public Law. Zhejiang Social Sciences, 10, 53-60.

[16]. Anna Segall, (1998). Collective economic sanctions and international humanitarian law — An enforcement measure under the United Nations Charter and the right of civilians to immunity: An unavoidable clash of policy goals? International Review of The Red Cross, 836, 763-784.

[17]. Weiyang tang and Juanqi Cai.(2025) .The Legislation and Practice Of The Anti-Foreign Law. Junhe Law review, Retrieved from https: //www.junhe.com/legal-updates/2673

[18]. Provisions on the Implementation of the Anti-Foreign Sanctions Law of the People's Republic of China, Retrieved from https: //www.gov.cn/zhengce/content/202503/content_7015400.htm

Cite this article

Han,J. (2025). A Study on the Conflict of Jurisdiction Between Anti-Sanction Recovery Litigation and International Commercial Arbitration. Lecture Notes in Education Psychology and Public Media,110,56-63.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume title: Proceedings of ICILLP 2025 Symposium: Digital Governance: Inter-Firm Coopetition and Legal Frameworks for Sustainability

ISBN: 978-1-80590-297-3(Print) / 978-1-80590-298-0(Online)
Editor: Renuka Thakore, Tonejit Gad-Harry
Conference website: https://www.icillp.org/Bristol.html
Conference date: 18 September 2025
Series: Lecture Notes in Education Psychology and Public Media
Volume number: Vol.110
ISSN: 2753-7048(Print) / 2753-7056(Online)

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