How does international law view Saudi Arabia's plan to launch a large-scale crackdown on Houthi armed forces? National lawyers interpret cross-border compliance risks
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According to foreign media reports, Saudi Arabia has recently informed some countries of a large-scale military strike plan against the Houthis in Yemen, which may take place in the coming weeks. As soon as the news came out, international oil prices fluctuated in the short term, and the insurance costs of Red Sea Shipping rose again. For most Chinese readers, this seems like a distant international news story. But as practicing lawyers, what we are more concerned about is: once the conflict escalates, what legal risks will Chinese companies and individuals in business face? From the United Nations Charter to China's Anti Foreign Sanctions Law, from export controls to force majeure clauses in maritime contracts, the legal ripples of this potential conflict are actually not far from us.
1、 International legal boundaries for the use of force: Does Saudi action have legitimacy?
According to Article 2 (4) of the Charter of the United Nations, all member states shall not use the threat or force against the territorial integrity or political independence of any member state in their international relations. There are two main exceptions: one is that the Security Council authorizes military action under Chapter VII; The second is to exercise the right of self-defense in accordance with Article 51 of the Charter.
Since 2015, Saudi Arabia has led a multinational coalition to intervene in the Yemeni civil war, primarily based on the request of the Hadi government for collective self-defense. But the Houthi controlled area borders the Saudi border, and Saudi Arabia has repeatedly accused Houthi militants of attacking oil facilities and civilian airports within its borders. If this large-scale strike is defined as "preemptive self-defense", there is significant controversy in the international legal community - whether preemptive self-defense meets the "urgency of being attacked" requirement has always been a focus of international legal debate.
From the perspective of legal practice, the legal characterization of such military actions will directly affect the direction of subsequent sanctions and counter sanctions. If the action is deemed legal by the Security Council, the sanctions measures of the relevant countries may gain broader international recognition; On the contrary, it may trigger a new round of unilateral sanctions and countermeasures. For Chinese companies that have investment or trade dealings in Saudi Arabia, Yemen, and neighboring countries, this means that the scale of compliance review may change at any time.
2、 Red Sea Shipping and Supply Chain: Legal Application of Force Majeure and Contract Termination
The Houthis have repeatedly attacked Red Sea merchant ships, causing major shipping companies around the world to detour around the Cape of Good Hope. If Saudi Arabia launches a large-scale strike, the security risks of the Red Sea route will further increase. At this time, a large number of international trade contracts, charter parties, and freight forwarding contracts will face obstacles to performance.
Article 180 of the Civil Code of our country stipulates that those who are unable to fulfill civil obligations due to force majeure shall not bear civil liability. Article 590 further clarifies that if one party is unable to perform the contract due to force majeure, it shall promptly notify the other party to mitigate the losses that may be caused to the other party, and shall provide proof within a reasonable period of time. However, in practice, whether "military conflict" naturally constitutes force majeure needs to be comprehensively judged based on the specific terms of the contract, the actual impact of the conflict on performance, and whether the obligation to reduce losses has been fulfilled.
It should be noted that many international contracts for the sale of goods are governed by the United Nations Convention on Contracts for the International Sale of Goods (CISG) or English law. Article 79 of CISG imposes strict limitations on the exemption conditions for "obstacles", requiring that the obstacles cannot be reasonably considered by the parties at the time of contract formation and cannot be overcome or avoided. The tense situation in the Red Sea region has been ongoing for a long time, and if the risks are known at the time of contract signing, it may be difficult to gain support for claiming force majeure. We suggest that companies immediately review the force majeure clauses, applicable laws clauses, and dispute resolution clauses in their current contracts, and if necessary, clarify the risk sharing mechanism through supplementary agreements.
3、 Cross border compliance and sanction risks: how can companies avoid stepping on landmines?
The escalation of military conflicts often accompanies increased sanctions. The United States, the European Union, the United Kingdom, and others may expand the sanctions list against entities and individuals related to the Houthi armed forces, and even impose secondary sanctions on third parties that have trade relations with specific regions of Yemen. Article 12 of China's Anti Foreign Sanctions Law clearly stipulates that no organization or individual shall implement or assist in the implementation of discriminatory restrictive measures taken by foreign countries against Chinese citizens and organizations.
But this does not mean that companies can ignore international compliance requirements. In practice, financial institutions such as banks, insurance, and shipping conduct strict scrutiny on transactions involving high-risk areas. If a company's counterparty is listed on the OFAC (Office of Foreign Assets Control) or EU sanctions list, even if the transaction itself is legal, it may face risks such as fund freezing, insurance refusal, and vessel seizure.
From a lawyer's perspective, we recommend that companies with business in the Middle East do three things: first, conduct sanctions list screening on existing customers and suppliers at least once a month; Secondly, include sanctions compliance statements and guarantee clauses in the contract to clarify the allocation of responsibilities in case of inability to perform due to sanctions; Thirdly, establish internal compliance records to document the approval process and due diligence basis for each sensitive transaction, in preparation for regulatory inquiries.
4、 Consular Protection and Legal Remedies for Chinese Citizens and Enterprises
If the conflict escalates, Chinese citizens and institutions in Yemen and surrounding areas may face threats to their personal and property safety. According to the Regulations of the People's Republic of China on Consular Protection and Assistance, embassies and consulates abroad have the responsibility to safeguard the legitimate rights and interests of Chinese citizens and legal persons overseas. Enterprises should develop emergency plans in advance, including personnel evacuation routes, backup of important documents, and coordination with local lawyers and security resources.
In addition, if a company suffers property losses due to conflicts, it may consider seeking compensation through channels such as war insurance and political risk insurance provided by China Export&Credit Insurance Corporation (Sinosure). But insurance claims usually require companies to prove the causal relationship between the loss and the insured risk, and to report it within the agreed time limit. In similar cases we have dealt with, many companies were refused compensation due to missing the reporting deadline or incomplete evidence chain, which is a profound lesson.
Conclusion: The legal response to geopolitical risks focuses on "one step ahead"
The direction of the conflict between Saudi Arabia and the Houthis may not be determined by lawyers; But the contract disputes, sanctions compliance, insurance claims, personnel protection and other issues caused by conflicts are precisely the areas where lawyers can intervene in advance. For outward oriented enterprises, geopolitical risk is not a "black swan", but a "gray rhino" that requires normalized management.
Guangdong Zhiming Law Firm has long focused on cross-border dispute resolution and international trade compliance, and can provide one-stop legal services such as contract review, sanctions screening, force majeure argumentation, and consular protection coordination for enterprises with business in the Middle East. If your company is facing similar difficulties, it may be advisable to undergo a compliance examination with a professional lawyer before the risk erupts.
