The Standing Committee of the National People’s Congress (NPC) has adopted a revised version of the Foreign Trade Law to strengthen China’s legal framework for high-level opening-up, promote high-quality trade growth, and enhance protection for businesses amid rising protectionism worldwide. The revision also brings the law more in line with international economic rules. The revised law, which has 11-chapters and 83-articles, will take effect on March 1. The Foreign Trade Law was enacted in 1994 and underwent its first major revision in 2004. It was further amended in 2016 and 2022. This marks its second comprehensive revision. Wang Xuekun, Dean of the Chinese Academy of International Trade and Economic Cooperation, said the current update is a key step to ensure that the legal system both keeps pace with China’s domestic development needs and aligns with international economic and trade rules. “Our goal is a win-win outcome. A more open, rules-based Chinese trading system will contribute to a more open world economy, especially amid rising unilateralism and protectionism,” Wang said.
The revision also incorporates reform measures into the legal framework such as the negative list management system for cross-border trade in services, encouragement of digital trade, and accelerated development of a green trade system. At the annual Central Economic Work Conference (CEWC) held in mid-December, Chinese policymakers laid out economic priorities for 2026, emphasizing the need to “support service export” and “actively develop digital and green trade”. Minister of Commerce Wang Wentao noted that recent years have seen new developments and changes in the field of foreign trade, deepening reform of the foreign trade system, and the vigorous growth of new forms and models of foreign trade, which have now been included in the law. To further optimize the trade environment, the revised law emphasizes strengthening the protection of intellectual property rights (IPRs) in foreign trade and establishing a system to stabilize industrial and supply chains. The revision further equips China with legal instruments to respond to external challenges and supplements and refines corresponding countermeasures, the China Daily reports.
The NPC Standing Committee has also held the first reading of amendments to the Trademark Law to better cope with malicious trademark registration, trademark squatting or hoarding, and infringements. Applicants found to have engaged in malicious registration could be fined up to CNY100,000.
The National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) have also unveiled the 2025 version of the Catalogue of Encouraged Industries for Foreign Investment, which will be effective from February 1, 2026. The policy sends a clear signal that foreign companies are encouraged to integrate more deeply into China's unified market and share its growth opportunities amid global uncertainty. The update marks the first revision of the catalogue in three years. The national catalogue adds 100 items, while the regional catalogue covering the central and western regions and other areas adds 105 items. There are also 303 revisions. The changes aim to channel foreign investment into advanced manufacturing, modern services, high technology and green sectors, while encouraging inflows into central, western and northeastern regions.
