Canadian Sanctions Related to People’s Republic of China
Types of sanctions
Asset freeze
Financial Prohibitions
Recent developments
- 2024-12-09 - Regulations were amended
- 2023-08-04 - Regulations were amended
- 2021-03-23 - Permit order was made
Prohibitions
Sanctions related to China have been enacted under the in response to the gross and systematic human rights violations occurring in the People’s Republic of China (PRC). On March 21, 2021, the Special Economic Measures (People’s Republic of China) Regulations (the Regulations) came into force.
The Regulations impose a dealings prohibition, an effective asset freeze, on listed persons. The Regulations prohibit any person in Canada and any Canadian outside Canada from:
- dealing in property, wherever situated, that is owned, held or controlled by a listed person or a person acting on behalf of a listed person;
- entering into or facilitating any transaction related to a dealing prohibited by these Regulations;
- providing any financial or related services in respect of a dealing prohibited by these Regulations;
- making available any goods, wherever situated, to a listed person or a person acting on behalf of a listed person; and
- providing any financial or other related services to or for the benefit of a listed person.
Causing, facilitating or assisting in prohibited activities is likewise prohibited.
The individuals listed in the Schedule to the Regulations are also inadmissible to Canada under the .
Exceptions
The above-noted asset freeze and dealings prohibitions do not apply to the following activities or transactions:
- payments made by or on behalf of designated persons pursuant to contracts entered into prior to the coming into force of the Regulations, provided that the payments are not made to or for the benefit of a designated person
- payments made by or on behalf of a listed person pursuant to contracts entered into prior to the coming into force of the Regulations, provided that the payments are not made to a listed person or to a person acting on behalf of a listed person;
- transactions necessary for a Canadian to transfer to a non-listed person any accounts, funds or investments of a Canadian held by a listed person on the day on which that person became listed;
- dealings with a listed person required with respect to loan repayments made to any person in Canada, or any Canadian outside Canada, for loans entered into with any person other than a listed person, and for enforcement and realization of security in respect of those loans, or repayments by guarantors guaranteeing those loans;
- dealings with a listed person required with respect to loan repayments made to any person in Canada, or any Canadian outside Canada, for loans entered into with a listed person before that person became a listed person, and for enforcement and realization of security in respect of those loans, or repayments by guarantors guaranteeing those loans;
- pension payments to any person in Canada or any Canadian outside Canada;
- financial services required in order for a listed person to obtain legal services in Canada with respect to the application of any of the prohibitions set out in these Regulations;
- transactions in respect of accounts at financial institutions held by diplomatic missions, provided that the transaction is required in order for the mission to fulfill its diplomatic functions under the Vienna Convention on Diplomatic Relations, or transactions required in order to maintain the mission premises if the diplomatic mission has been temporarily or permanently recalled;
- transactions with any international organization with diplomatic status, agencies of the United Nations, the International Red Cross and Red Crescent Movement, or with any entity that has entered into a grant or contribution agreement with Foreign Affairs, Trade and Development Canada; and
- transactions by the Government of Canada that are provided for in any agreement or arrangement between Canada and the People’s Republic of China.
Permits and Certificates
A separate Special Economic Measures (People’s Republic of China) Permit Authorization Order made pursuant to subsection 4(4) of the Special Economic Measures Act authorizes the Minister of Foreign Affairs to issue to any person in Canada and any Canadian outside Canada a permit to carry out a specified activity or transaction, or any class of activity or transaction, that is otherwise restricted or prohibited pursuant to the Regulations.
Background
Human rights violations committed in the People’s Republic of China (PRC) are well-documented and continue to raise significant concerns. These violations lie within the greater frame of the PRC Government-led systematic campaign of repression against Uyghurs and other religious and ethnic minorities in the Xinjiang Uyghur Autonomous Region (XUAR), Tibetans in the Tibet Autonomous Region (TAR), and against Falun Gong Practitioners.
Credible evidence and reports have continued to emerge of egregious human rights violations by Chinese authorities against Uyghurs and other Muslim ethnic minorities in the XUAR, Tibetans in the TAR, and against Falun Gong Practitioners on the basis of their religion and ethnicity. This has included information from experts, investigative journalists, leaked government documents, firsthand testimonials and other data, which illustrate a systematic campaign of repression by the Chinese Government.
On March 21, 2021, Canada enacted the Special Economic Measures (People’s Republic of China) Regulations in response to the gross and systematic human rights violations committed in the PRC. These measures also targeted one entity and four individuals for their roles in the mass arbitrary detention, torture or cruel, inhuman and degrading treatment or punishment, mass surveillance and forced labour of Uyghurs and other Muslim ethnic minorities in the XUAR, which amount to participation in gross and systematic human rights violations in the region.
On December 09, 2024, Canada amended the Special Economic Measures (People’s Republic of China) Regulations to list an additional eight (8) individuals to the Schedule. These individuals are former or current senior officials of the People’s Republic of China involved in gross and systematic violations of human rights in the country, against Uyghurs and other Muslim ethnic minorities in the XUAR, Tibetans in the TAR, and against Falun Gong Practitioners.
Selected documents
Regulations
Regulations and Orders made under the Special Economic Measures Act:
- Justice Canada consolidation of the
- 2024-12-09 (Entered into force) - (SOR/2024-253)
- 2023-08-04 (Entered into force) - (SOR/2023-175)
- 2021-03-21 (Entered into force) - (SOR/2021-49)
- 2021-03-23 (Entered into force) - (SOR/2021-50)
Announcements
Announcements related to the Regulations made under the Special Economic Measures Act:
- 2024-12-10 - News Release -
- 2024-12-10 - Backgrounder -
- 2021-03-22 - News Release -
- 2021-03-22 - Backgrounder -
Related links
Legal advice
Please be advised that ¶¶ÒùÊÓƵ cannot provide legal advice to members of the public. For this reason, we cannot deliver an opinion as to whether or not a specific activity or transaction would contravene sanctions legislation. You should consider seeking legal advice in relation to an activity that may contravene a Canadian sanction law.
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