Key Insight: The amended Foreign Trade Law of the People's Republic of China, revised in 2025 and effective from March 1, 2026, represents not merely an update of provisions but a significant shift in the philosophy and mechanisms governing China's trade landscape.
China's National People's Congress Standing Committee has recently adopted the newly amended Foreign Trade Law, marking a substantial, systematic, and forward-looking upgrade to the nation's legal framework governing external trade.
The new law, effective March 1, 2026, aims to advance high-standard opening-up and promote high-quality development of foreign trade. It notably significantly strengthens the protection of intellectual property (IP) related to foreign trade and sets clear directions for emerging sectors such as digital trade and green trade.
01 Overview of Key Revisions: Evolution in Legislative Philosophy and Structure
Compared to the 2022 version, the new revised law incorporates "safeguarding national sovereignty, security, and development interests" into its legislative objectives and emphasizes its enactment "in accordance with the Constitution," further solidifying its foundation in national interest and the rule of law.
Structurally, the law has expanded from 69 to 83 articles, achieving greater comprehensiveness and logical coherence. The General Provisions section introduces two pivotal additions:
First, it explicitly states that "the State shall proactively align with high-standard international economic and trade rules" (Article 6), demonstrating China's resolve to deepen institutional opening-up.
Second, it establishes a "trade policy compliance mechanism" (Article 7), requiring governments at all levels to conduct compliance assessments in accordance with national regulations when formulating policies involving foreign trade, thereby mitigating international compliance risks at the source.
02 IP Protection: A Systemic Shift from 'Protection' to 'Empowerment'
The protection of intellectual property related to foreign trade is a core strengthened area of this amendment. The new law not only reinforces existing protection mechanisms but also systematically incorporates elements of international collaboration, risk prevention, and capacity building.
New Article 33 stipulates:
"The State shall carry out international exchange and cooperation on intellectual property related to foreign trade, actively promote external negotiations concerning such intellectual property, establish and improve early-warning and rights protection assistance information platforms for overseas intellectual property, and enhance the compliance levels and risk response capabilities of foreign trade operators regarding intellectual property."
This indicates a strategic shift from reactive protection to proactive planning, aiming to construct a comprehensive, full-chain IP safeguarding system for Chinese enterprises expanding globally.
Refining Regulation Against Abuse of Rights: Article 34 (corresponding to the previous Article 29) removes the qualifier "one of," broadening the scope for enforcement. Competent authorities may now take necessary measures against IP right holders who engage in acts such as preventing licensees from challenging the validity of the IP, imposing mandatory package licensing, or stipulating exclusive grant-back conditions in licensing contracts, where such acts harm fair competition in foreign trade.
Strengthened Reciprocal Measures: Article 35 streamlines the definition of protected entities from "legal persons, other organizations, or individuals" to "individuals and organizations," offering broader coverage and more precise wording. It further clarifies that should another country or region fail to grant national treatment to Chinese entities or provide adequate and effective IP protection for goods, technologies, or services originating from China, Chinese authorities may take necessary measures in accordance with the law and relevant international treaties, presenting a more defined and clear toolkit for response.
03 Trade in Services: Establishing a 'Negative List' Management Model
The new law introduces a breakthrough provision in the chapter on trade in services. New Article 31 specifies that a negative list management system will be implemented for cross-border trade in services conducted via modes such as cross-border supply, consumption abroad, and movement of natural persons.
This is set to significantly enhance transparency and predictability in the services trade sector and represents a key step towards aligning with high-standard international rules. Services trade via commercial presence continues to be governed by relevant regulations such as the Foreign Investment Law, reflecting a categorized management approach.
04 New Forms of Trade and Trade Order: Emphasizing Digitalization, Green Transition, and Security
To accommodate new trends in foreign trade development, the new law introduces dedicated articles to support new business forms and models:
Promoting Digital Transformation (Article 60): Explicitly supports digital trade, the application of electronic bills of lading and invoices, and promotes the international mutual recognition of digital certificates and electronic signatures.
Accelerating the Development of a Green Trade System (Article 61): Encourages the import and export of green and low-carbon products, and promotes the development of and international cooperation concerning related product standards, certification, and labeling systems.
Enhancing Foreign Trade Order and Security Provisions: New Article 40 authorizes the state to take measures, including prohibitions or restrictions on trade, against foreign entities that endanger China's sovereignty, security, and development interests, violate normal market transaction principles, or adopt discriminatory measures against Chinese entities causing serious harm. It explicitly prohibits any organization or individual from providing such entities with assistance including agency, freight, customs declaration, or warehousing services, thereby fortifying the barrier for trade security.
05 Legal Liability: Significantly Increased Costs for Violations
The new law substantially raises penalties for violations, reflecting an orientation toward "strict regulation and robust protection."
For example, the maximum fine for unauthorized import or export of goods under state trading management has been sharply increased from 50,000 RMB to 500,000 RMB.
The penalty baseline for serious violations, such as dealing in prohibited or restricted goods/technologies or services, has also been significantly raised. Notably, in cases where there are no illegal gains or where such gains are less than 500,000 RMB, a fine of up to 500,000 RMB may be imposed, demonstrating markedly enhanced deterrence.
Conclusion and Outlook
This revision of the Foreign Trade Law constitutes a systematic innovation grounded in the present while focused on the long term. It responds to the need to safeguard national interests within a complex international trade environment while proactively positioning China in future growth areas like digital trade and the green economy.
Particularly noteworthy is the evolving role of the law in the IP domain—transitioning from providing baseline protection to enabling strategic empowerment. By building an integrated support platform for early warning, rights protection, and compliance, it aims to assist Chinese enterprises in navigating global competition with greater stability and confidence.
Following the implementation of the new law, foreign trade enterprises should promptly conduct compliance self-assessments and strategic adjustments, with particular focus on areas such as IP risk prevention, cross-border data compliance, and alignment with green standards. Simultaneously, they should fully utilize state-provided mechanisms for trade promotion, financial support, and diversified dispute resolution to enhance their international competitiveness within a framework of higher-level opening-up.
Original legal text: Foreign Trade Law of the People's Republic of China
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