Chinese fragmentary extraterritoriality provisions were eventually incorporated into the emerging foreign relations regime that was established with the promulgation of the Law on Foreign Relations of the People’s Republic of China (CFLA) and the Law of the People’s Republic of China on Foreign State Immunity (CFSIL) in 2023. With the international legal regime failing to provide a clear basis and effective channels to resolve increasing numbers of conflicts of interest between different states, the expanded use of extraterritoriality and sanctions has become increasingly prevalent in international practice. After elaborating on China’s legislative movements to expand the prescriptive jurisdiction of Chinese courts over national security and economic regulation, albeit with restrained judicial practice, this article emphasizes the internal connection between China’s expanding use of extraterritoriality and the current tendency in Chinese foreign relations towards resisting economic sanctions. By comparing China’s expanding path towards extraterritoriality with US- and EU-relevant practice, this article concludes that there is a noteworthy and controversial tendency of expanding extraterritoriality beyond the boundary of legitimate countermeasures and jurisprudence.