BERLIN—Germany’s powerful BDI industry association criticized China on Tuesday for passing the Anti-Foreign Sanctions Laws, which it said sent a worrying signal to investors and companies abroad. China is one of the most important export markets for German companies outside the European Union’s single market, but concerns over human rights abuses and a crackdown in Hong Kong are putting a strain on political as well as economic ties. Beijing passed a wide-ranging law last week to counter foreign sanctions, in an apparent move to legalize its tit-for-tat retaliation. “Instead of relying on a deescalation, the Chinese government is creating new uncertainties. This is damaging China’s reputation as an investment location and trading partner,” BDI board member Wolfgang Niedermark said. The law was very different from similar laws in the EU as it undermined legal clarity and created a gray area that hung over any company doing business in China, he …