The new Foreign Trade Law of the People’s Republic of China officially came into force on March 1. The law is a significant shift for China because, compared to the openness to international trade maintained so far, it introduces measures more focused on protecting the local economy. Article 1 of the Law clarifies this shift in approach, indicating among its objectives “the protection of national sovereignty, security, and development interests.” This evolution is part of a progressive alignment of Chinese trade policies with strategic security considerations, a process already initiated by China through export control and data security regulations and, more recently, strengthened with the 2025 Cybersecurity Law.
In line with this new approach, the reform grants the Ministry of Commerce broader sanctioning and control powers, while also granting it a direct liaison role with the State Council and national security authorities. More generally, there is a significant expansion of the administrative and legal tools available to authorities to adopt tariff and non-tariff measures against entities and individuals that interrupt normal commercial relations with local companies or engage in practices deemed discriminatory. These provisions are not limited to the trade of goods, but extend to services, technology transfer, and digital trade.
The emphasis on the Chinese Administration’s greater discretionary power in adopting countermeasures is reflected in the introduction of the principle of unilateral defensive measures. In fact, under the new Law, China can autonomously adopt temporary import and export restrictions or bans, thus actually bypassing the dispute resolution mechanisms provided for by bilateral or multilateral agreements, especially in cases where these mechanisms are paralyzed.
Finally, another innovative aspect concerns the adaptation of the rules to current global trade dynamics. Among these, the Law lays strong emphasis on the protection of intellectual property, the digitalization of trade, and the development of green trade that the institutions intend to promote also through the definition of new product standards, specific certifications, and labelling systems.