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Significance

It gives a veneer of legality to interference in other countries’ affairs. The new law raises the level of threat from Beijing to foreign organisations and those with connections overseas. The United States, and others, will feel vindicated in adopting a more robust approach to China.

Impacts

The vague wording of the law will deter foreign investors, not least those connected with the United States.

Beijing’s prioritisation of geopolitical primacy over post-pandemic economic recovery will weigh on China’s economy.

China is increasingly offering other countries alternatives to a Western-ordered world.

Codifying the direction of foreign policy will further constrain officials’ already limited negotiation flexibility.

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