China has approved a revised Foreign Trade Law that takes effect on March 1, 2026, expanding legal tools to protect sovereignty, security, and development

China’s Standing Committee of the National People’s Congress on Saturday signed off on the new version of the Foreign Trade Law, saying it’s legally coming into force on March 1st.

The law first came into effect in 1994, got updated in 2004, and was lightly amended in 2016 and 2022. But this year’s new rules follow the CPC Central Committee’s direction to “promote high-quality development” in China’s foreign trade.

The Committee said:-

“This is an important measure taken against the backdrop of profound changes in the global economic and trade landscape and the accelerated restructuring of international rules, and is of great significance for promoting high-level opening-up, maintaining foreign trade order, and protecting the legitimate rights and interests of foreign trade operators.”

Law lays out legal structure, reform plans, and enforcement muscle

The new law is made up of eleven chapters and eighty-three articles. The Committee said foreign trade must serve “national economic and social development” and push the goal of turning China into a “strong trading nation.” And yeah, it puts “national sovereignty, security and development interests” right up front.

The law pushes reforms that will legally lock in newer trade models. According to the Committee:

“Reform measures such as the negative list management system for cross-border service trade, support and promotion of the development of new forms and models of foreign trade, support and encouragement of the development of digital trade, and acceleration of the establishment of a green trade system have been elevated to legal systems.”

A big chunk of the law is aimed at matching “high-standard international economic and trade rules.” Officials are now legally expected to align China’s rules with global standards, but only when it serves the country’s own plan. They’re also expected to help write new global rules, not just follow them.

So if there’s a rulebook being passed around, China wants a pen. And if push comes to shove, the law gives China more tools to strike back. According to the Committee, it “improved corresponding countermeasures” and strengthened “legal responsibilities” tied to foreign trade fights. In short: China’s toolbox just got heavier.

Beijing links law upgrade to struggling industries and falling profits

All this comes as China’s industrial profits are tanking. Data from the National Bureau of Statistics shows profits fell by 13.1% in November compared to the same time last year. That’s after a 5.5% drop in October. For the first 11 months of 2025, profits are barely in the green, up just 0.1%, down from 1.9% earlier.

Bloomberg Economics had expected worse, but a fall is still a fall. Companies are hurting from low demand at home and nasty industrial deflation. And yes, that’s happening even with a tariff truce with the US in place.

Some sectors are holding on. Manufacturers posted a 5% rise in profits this year, mainly from tech-heavy industries like aerospace and electronics. Utilities are still growing. But miners are deep in the red, with double-digit losses.

The back-to-back profit dips are bad news for future investment and hiring. But government officials haven’t pushed out new stimulus… yet. The growth target for the year is still around 5%, and they think they can hit it without pulling more levers.

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