China has implemented a new supply chain security regulation that elevates protecting industrial and supply chains to a national security issue, granting officials power to punish entities threatening vital resources. The 18-point regulation was passed and took effect on March 31, with its full text published on Tuesday. It comes as Beijing faces a turbulent global outlook.
China has implemented a new regulation on supply chain security, empowering officials to punish any entities deemed to threaten the country's access to vital resources and the free flow of goods. The measure elevates safeguarding China's industrial and supply chains to a national security issue.
The 18-point regulation was passed and became effective on March 31, with the full text published only on Tuesday. It calls for officials to create a list of sectors vital to China's economic and national security, strengthen strategic reserves of goods and capacity, and establish better systems for emergency deployment of reserves during a crisis.
Notably, articles 14 and 15 stipulate that the State Council, China's cabinet, and 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.
The regulation comes amid an increasingly turbulent global outlook confronting Beijing.
