China has introduced new regulations that allow authorities to confiscate assets belonging to foreign governments or companies that disrupt its supply chains, particularly in light of recent tensions involving Iran and the United States. This move comes as a direct response to the US seizing Iranian oil shipments intended for China. The regulations, signed by Chinese Premier Li Qiang, grant sweeping powers to investigate and penalize foreign entities, including actions such as denying entry and asset seizures. This regulatory shift reflects China's strategic effort to enhance its economic retaliation capabilities against the US, which has imposed various trade and technological restrictions. Analysts warn that these escalating tensions, particularly in sectors like semiconductors and rare earth minerals, could lead to significant disruptions in global supply chains. The European Chamber in China has cautioned that China's extraterritorial controls may have unprecedented global consequences.