Great-power rivalry is usually measured in aircraft carriers, tariffs and missiles. Increasingly, however, one of its most consequential battlefields lies elsewhere: in statutes, courtrooms and corporate compliance departments. China’s growing embrace of extraterritorial law marks a significant shift in the character of its competition with the United States.

For decades, Beijing has condemned Washington’s ability to extend its influence beyond American territory through sanctions, export controls and the global reach of the dollar-based financial system. Now China is developing legal instruments of its own to resist such pressure ~ and, increasingly, to impose pressure in return. The implications extend well beyond diplomatic disputes. A multinational company operating simultaneously in China and the United States may increasingly find itself confronted with incompatible legal commands. Washington may demand that it sever ties with a sanctioned Chinese entity.

Beijing may regard compliance with that demand as participation in illegitimate foreign interference. Obeying one government can therefore expose the company to punishment........

© The Statesman