The practice of effect doctrine and China’s response

Abstract

The effects doctrine, which permits a state to assert jurisdiction over extraterritorial conduct producing substantial effects within its territory, has evolved from a contested instrument of United States antitrust enforcement into a jurisdictional approach increasingly adopted across multiple legal domains by the major economic powers. This article traces its doctrinal development in competition law before examining its expanding application in domestic criminal law and international criminal adjudication. Against this comparative backdrop, the article analyses China's legislative and judicial engagement with the effects doctrine, arguing that recent developments in competition, securities, anti-money laundering, and counter-sanctions legislation collectively constitute an emerging framework for the extraterritorial application of Chinese domestic law. In the criminal sphere, a purposive reading of the existing territorial jurisdiction provision provides a viable doctrinal bridge. While affirming the legitimacy of China's effects-based jurisdictional claims, the article cautions that their exercise must remain conditioned on effects that are substantial, direct, and reasonably foreseeable, and must respect the principles of proportionality and international comity.

Keywords: effect doctrine; extraterritorial application; antitrust law; securities law; criminal law

DOI: 10.7176/JLPG/153-06

Publication date: June 28^th 2026