Taipei: China's new "ethnic unity" law poses risks not only to Taiwanese citizens but also to businesses because of its "overly broad" provisions and long-arm jurisdiction, a Taiwanese legal scholar said Wednesday.

According to Focus Taiwan, China's Ethnic Unity and Progress Law, aimed at "forging a strong sense of community for the Chinese nation," took effect Wednesday, as Taiwanese experts and government officials gathered at a seminar in Taipei to discuss its potential impact on Taiwan. Chen Yu-jie, an associate research professor at Academia Sinica's Institutum Iurisprudentiae, highlighted that many of the legal concepts in the new law are "overly broad," adding that its vague provisions "significantly increase legal risks" for ordinary people in Taiwan.

Article 63 of the law states that organizations and individuals outside China who engage in acts against China that "undermine ethnic unity and progress" or "promote ethnic separatism" shall be held legally liable in accordance with the law. Chen noted that such terms fail to clearly define what conduct is prohibited, making it difficult for individuals to understand how to comply with the law.

Chen also pointed to Article 31, which prohibits organizations and individuals from producing or disseminating text, images, audio, or video containing content that undermines ethnic unity and progress. This could potentially put Taiwanese people posting about their Taiwanese identity or opposition to Chinese policies at risk of violating the law.

Additionally, the law's long-arm jurisdiction and Article 54, which establishes a complaint and reporting mechanism, could have a "chilling effect" in Taiwan. Chen warned that the provisions could lead to self-censorship among citizens.

Risks for Taiwanese businesses were also addressed by Chen, who cautioned that the law could create additional challenges for businesses operating in China. Article 60 requires companies to promptly stop any acts within their units that "undermine ethnic unity and progress," with responsible personnel facing legal liability if they fail to do so.

Taiwanese businesses may need to manage not only their corporate conduct but also their employees' behavior and internal discussions related to issues such as Taiwanese identity or Taiwan's status. Compliance statements under international supply chain requirements could also be problematic, as they might be interpreted by Beijing as "smearing" China's ethnic policies.

Chen concluded that the existence of such risks could lead to increased self-censorship among businesses and individuals in Taiwan.