On March 31, 2026, the State Council issued the Provisions of the State Council on the Security of Industrial and Supply Chains (hereinafter referred to as the Provisions), which took effect immediately upon promulgation. Against the backdrop of certain countries persistently pursuing decoupling, disrupting supply chains, and abusing economic sanctions, the Provisions serve both as an institutional safeguard for China’s economic security and a significant step for the country to participate in global industrial and supply chain governance while enhancing its voice in shaping international rules.
Xu Donggen, a professor at KoGuan Law School of Shanghai Jiao Tong University, pointed out in an article that the introduction of the Provisions represents a legislative response to the structural imbalances in the current international economic order, marking a shift from reactive crisis management to proactive rule-making. While certain countries have overstretched the concept of national security by imposing discriminatory tariffs, export controls, and investment reviews, severely undermining the stability of global industrial and supply chains, the existing international dispute resolution mechanisms have proven inadequate in providing effective remedies — forcing China to resort to domestic legislation as a countervailing tool. The Provisions thus go beyond merely responding to lawsuits within the existing rule framework; they actively shape the rules of international competition.
A key insight from the Provisions is that the security of international industrial and supply chains is not a one-time legislative declaration, but a systematic, long-term endeavor supported by risk monitoring, emergency reserves, security investigations, extraterritorial application, and international cooperation. Shifting from countermeasures to rule integration, China is evolving from a rule-taker to a rule-participant, and even a rule-shaper in the international arena. While the Provisions represent a critical first step toward achieving the goal of “ensuring development through security and enhancing security through development,” their effective implementation still requires coordinated progress in supporting regulations, judicial practices, and international dialogue. This will also serve as a key focal point for strengthening China’s foreign-related rule of law capacity and enhancing its voice in international rule-making within the industrial and supply chain domain during the 15th Five-Year Plan period.
Social Sciences Weekly, May 7, 2006, Issue No. 2000, Page 4