China is preparing new legal tools to strike back against economic pressure from abroad, raising risks for foreign businesses operating in the world's second-largest economy.
A proposed law on 'procuratorial public-interest litigation' would empower state prosecutors to file civil suits against foreign organizations and individuals who allegedly damage China's interests.
The law would add to an array of legal mechanisms that China has created in recent years to counter foreign sanctions and other forms of what Beijing considers coercion, particularly from the U.S.
Most bills are passed after a third reading, which for this proposed law could take place by the end of this year, legal experts say.
Defendants in civil lawsuits may be ordered to pay compensation and damages, and can face criminal penalties if they fail to comply.
Public-interest lawsuits can result in court injunctions and compensation that damage companies' revenue, operations and reputation.
