Chinese lawmakers discussed a draft revision to the Foreign Trade Law, which incorporates a series of reform measures into national legislation. The move will reinforce the legal basis of China's opening-up while protecting national security amid a complex global trade landscape, an expert said. The draft, consisting of 11 chapters and 80 articles, was submitted to the a session of the Standing Committee of the National People's Congress (NPC) for deliberation. It seeks to codify key reform measures, including a negative list system for the cross-border services trade, into binding law and ensure their effective implementation. In terms of implementing reform measures, the draft revision stipulates that China will proactively align with high-standard international trade and economic rules and actively participate in the formulation of global trade regulations.
To further optimize the environment for foreign trade, the draft revision specifies that the state will strengthen intellectual property (IP) protection related to foreign trade, enhance the IP compliance and risk management capabilities of trade operators, and establish trade adjustment assistance to stabilize industrial and supply chains. It also encourages professional service providers to improve service networks and offer high-quality support to trade operators, while setting out provisions for developing diversified mechanisms to resolve foreign trade disputes, the report said. “The revision consolidates previously scattered legal provisions into a more systematic and structured legal framework, signaling China's commitment to a rules-based free trade and responding to the evolving needs of high-quality growth,” said Dong Shaopeng, Senior Research Fellow at the Chongyang Institute for Financial Studies at Renmin University of China. The draft introduces tougher countermeasures against foreign individuals or organizations that threaten China's sovereignty, security, or development interests.
The current Foreign Trade Law of the People's Republic of China was adopted at the 7th Session of the Standing Committee of the 8th NPC on May 12, 1994, and came into effect on July 1, 1994. Over the past 31 years, the law was amended in 2004, and further revised in 2016 and 2022. “If implemented, the revised Foreign Trade Law will serve as a cornerstone for China's trade policy in the years to come, facilitating a more integrated, innovative, and secure trading system that will have a positive impact on enforcement, international understanding, and security protection,” Dong said, as reported by the Global Times.
