The new regulation makes protecting China’s supply chains a national security issue – and allows Beijing to punish any entities that threaten them
2-MIN READ2-MINFrank Chenin ShanghaiPublished: 5:30pm, 8 Apr 2026China has implemented a new regulation on supply chain security that hands officials the power to punish any entities deemed to threaten the country’s access to vital resources and the free flow of goods, as Beijing confronts an increasingly turbulent global outlook.
The 18-point regulation – which was passed and became effective on March 31, but the full text of which was only published on Tuesday – elevates safeguarding China’s industrial and supply chains to a national security issue.
They also call for officials to create a list of sectors that are vital to China’s economic and national security, as well as strengthen strategic reserves of goods and capacity. They also stress the need for better systems to be put in place to allow the emergency deployment of reserves during a crisis.
Notably, articles 14 and 15 stipulate that the State Council, China’s cabinet, and its related departments can launch investigations into external actions – such as discriminatory bans or restrictions, including suspending normal business transactions – that endanger the country’s industrial and supply chains.
