GBAF Logo
Global Banking & Finance Awards® 2026 Nominations open, free to enter Nominate now →
EU concerned by China's new ethnic unity law which targets people overseas - Finance news and analysis from Global Banking & Finance Review
Finance

EU concerned by China's new ethnic unity law which targets people overseas

Published by Global Banking & Finance Review

Posted on July 2, 2026

3 min read

· Last updated: July 2, 2026

Add as preferred source on Google

EU and US concerned by China's new ethnic unity law which targets people overseas

International Reactions to China's New Ethnic Unity Law

BRUSSELS, July 2 (Reuters) - The United States and the European Union expressed concern on Thursday about China's new law on ethnic unity that went into effect this week and gives Beijing the legal basis to take action against people outside its borders.

Background and Scope of the Law

China passed the law in March to create a "shared" national identity among the country's 55 ethnic minority groups, which include Tibetans and Uyghurs, some of whom chafe under Chinese governance and have often staged protests, some of them violent.

The law, which went into effect on Wednesday, includes a clause saying people and groups beyond the borders of the People's Republic of China can be held legally accountable for undermining "ethnic unity and progress or inciting ethnic separatism."

EU Concerns and Statements

In a statement, an EU spokesperson said the law may further restrict the cultural, linguistic and religious rights of ethnic minorities. 

Such rights should be upheld in line with international human rights standards and China's commitments within the U.N. framework, the spokesperson added.

"We are concerned about the extraterritorial application of the law. The EU opposes the extraterritorial application of third-country legislation in breach of international law," the spokesperson said.

"We call on any third country to refrain from attempts to conduct transnational repression within the European Union or elsewhere."

U.S. Response

Official Statements and Policy

U.S.: WILL DEFEND INDIVIDUALS FROM OVERREACH

In a separate statement, a U.S. State Department spokesperson called the law "problematic" for forcing people outside China to "actively promote the Chinese Communist Party's 'ethnic unity' agenda, or face retaliation from Chinese authorities."

"The United States will safeguard our sovereignty and defend individuals from the overreach of foreign governments and regimes trying to silence, intimidate, harass, harm or coerce them within our borders," the official said.

Recent Enforcement Actions

In recent years, the U.S. has ramped up enforcement of parts of the 1917 Espionage Act, a law meant to curb activities of foreign agents on U.S. soil. Some individuals were charged in 2023 with allegedly running a Chinese "secret police station" in New York. 

China's Position and Global Reactions

China's Foreign Ministry did not immediately respond to a request for comment.

A senior Chinese official said last week the government has a right to hold people accountable outside its borders who contravene the law, adding this was in line with international practice and was legal and necessary.

Rights groups have previously complained that China has tried to use Interpol "red notices" to get foreign governments to arrest people abroad it wants for political offences at home.

Impact on Taiwan and Regional Response

The law has sparked alarm in Chinese-claimed Taiwan, in particular that it could give Beijing another legal basis to go after Taiwanese it views as separatists.

In a separate statement on Thursday, Taiwan's China-policymaking Mainland Affairs Council said the government will work with like-minded countries "to resist the Chinese communists' threats."

"This is intimidation and coercion through malicious transnational repression," it added. 

China's legal system has no jurisdiction or authority in Taiwan, whose government rejects China's sovereignty claims.   

Reporting Credits

(Reporting by Brussels newsroom; Writing and additional reporting by Ben Blanchard in Taipei, Michael Martina in Washington, and the Beijing newsroom, Editing by William Maclean and Rod Nickel)

Key Takeaways

  • China’s law, adopted on March 12, 2026 and effective July 1, asserts jurisdiction over overseas individuals 'undermining ethnic unity'—raising concerns about transnational repression (en.wikipedia.org).
  • EU institutions including the European Parliament have condemned the law’s assimilationist provisions and extraterritorial reach, urging repeal and suspension of extradition treaties (europarl.europa.eu).
  • Human rights groups and UN experts warn the law threatens minority cultural, linguistic and religious freedoms, while critics call it institutionalized assimilation under Party ideology (aljazeera.com).

References

Frequently Asked Questions

What is China's new ethnic unity law?
China's new ethnic unity law gives Beijing the basis to act against people both inside and outside its borders to promote a shared national identity among ethnic minorities.
Why is the EU concerned about the law?
The EU is concerned the law could restrict cultural, linguistic, and religious rights of minorities, and enable extraterritorial legal actions.
Who could be affected by this law outside China?
People and groups beyond China's borders, including overseas Chinese, ethnic minorities, and political opponents, could be targeted under this law.
How has Taiwan responded to China's law?
Taiwan's Mainland Affairs Council condemned the law as intimidation and vowed to work with other countries to resist Chinese threats.
Does China have legal jurisdiction over Taiwan?
No, China's legal system has no jurisdiction or authority in Taiwan, which rejects Beijing's sovereignty claims.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category