China Introduces New Supply Chain Security Regulations

Written By Richard Zhu

China’s State Council has released new regulations to strengthen the security and resilience of industrial and supply chains. The rules took effect in April 2026 and aim to reduce risk, improve control, and protect national economic security.

Key Points

  • Centralised coordination
    The government will oversee supply chain security across multiple departments and local governments.

  • Focus on key industries
    China will identify and update a list of critical sectors, including important materials, technologies, equipment, and products.

  • Risk monitoring and early warning
    Authorities will track supply chain risks and issue warnings if disruptions could impact the economy or national security.

  • Emergency intervention powers
    In serious situations, the government can step in to control production, logistics, and supply.

  • Stronger supply chain control
    Companies operating in China are encouraged to diversify suppliers, strengthen domestic sourcing, and reduce reliance on concentrated or vulnerable supply chains.

  • Data and information control
    Increased focus on information sharing across industries, with stronger controls over sensitive data.

  • Countermeasures against foreign actions
    China can investigate and respond to foreign entities that restrict or disrupt its supply chains, including through trade, investment, or sanctions measures.

  • Mandatory compliance
    Companies and individuals must follow government directives, with penalties for non-compliance.

Summary

China is increasing control over supply chains, especially in key industries. Businesses operating in China should expect stricter oversight, stronger compliance requirements, and greater emphasis on supply chain risk management and local resilience.

Source: https://www.gov.cn/zhengce/content/202604/content_7064837.htm

Richard Zhu