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Anna Pawlak-Kuliga, CEO and president of Ikea China, said the plan has been adjusted based on the dynamics in the local market. "The home furnishings market in China is now in a phase of stable growth. In addition, urbanization, digitalization and people's increasing disposable income are changing the way people live and consume.

Any act that endangers national security will be seriously punished without regard for external opinions, it said, adding that US attempts to block the law's implementation will never succeed.

Any evidence of pregnancy, abortion, sexual assault, domestic violence, bullying, abandonment or mistreatment must be reported to police within 24 hours, according to a code signed by 10 government departments in Shanghai's Minhang district on Monday.

Apart from sanctioning US companies, Luo said China should also sanction Taiwan personnel and companies involved in the transactions. "We have to let them know buying weapons is inviting trouble," he said.

Another common problem, he said, is investors submitting a forged bank statement. "Once we get any statement from an investor, we forward them to banks to verify whether they are genuine," Kariuki said.