The Research Of League Issues Of International Secondary Sanctions

Financial secondary sanctions are combination of financial sanctions and secondary sanctions, and are the upgrading of traditional financial sanctions. The traditional financial sanctions happen between the initiator and the target, while the financial secondary sanctions involve the third party. A reason of frequency use of financial secondary sanctions is the change in the political and economic situation of the world. Under the background of world multi-polarization, multilateral economic sanctions are difficult to be carried out; the effect of unilateral economic sanctions is very limited. Secondary sanctions successfully avoid the disadvantage of the two type’s economic sanctions, with minimal cost to achieve maximum benefit. Financial secondary sanctions require a lot for the initiator. United States, who is the world’s financial hegemony in the world, is the only country who is capable of performing financial secondary sanctions.If other countries want to launch financial secondary sanctions, they must obtain the assistance and support of the United States. Because of the above characteristics, financial secondary sanctions cause controversy on the extraterritorial jurisdiction, legitimacy basis and relief way, this article on the three analysis and research on the legal issues.The punishment object of financial secondary sanctions is expanded to a third party. A third party includes its own people or institutions outside the territory and also includes foreigners or institutions outside the territory. United States cites the people principle, effect principle, protective principle and common principle as the basis of extraterritorial jurisdiction in financial secondary sanctions, but the basis is difficult to be accepted by the international community. The essence of extraterritorial jurisdiction is to achieve its national interests and foreign policy, which is a hegemony behavior.The United States provides legal basis for financial secondary sanctions by domestic legislation. But this kind of domestic legislation, in fact, beyond the scope of the authorization of the United Nations Security Council sanctions resolution, which violates the spirit of the charter of the United Nations. America’s financial secondary sanctions is actually a unilateral foreign economic force, is not in conformity with the agreement of the international community’s interests.The party which is sanctioned can seek a variety of ways to relief themselves. The initiator will remove the sanction after the party sanctioned compromise. But the sanctioned party can deny that the effectiveness of the secondary sanctions through domestic legislation, or appeal to WTO.Financial secondary sanctions caused a great loss to China’s relevant institutions. Elevate the status of domestic financial markets in the world is an important means of defense financial secondary sanctions. After suffering financial secondary sanctions, it is necessary to make defensive legislation and actively use WTO rules to reduce the loss that caused by sanctions.