Thirty-two years ago, in 1994, the first Foreign Trade Law of the People's Republic of China came into effect. At the time, China had only established the framework of a socialist market economy, and foreign trade was largely centered on the import and export of goods. In 2004, the law was comprehensively revised following China's accession to the World Trade Organization (WTO) in 2001, shifting its focus toward fulfilling multilateral commitments, regulating trade order, and expanding opening-up.

On March 1, the newly revised Foreign Trade Law of the People's Republic of China formally takes effect, marking the first systematic update since 2004. Over the intervening two decades, the external environment has undergone significant changes. The structure of foreign trade, the forms of commerce, and the global rule-making landscape are all significantly different today.

Over the past decade, China has continued to advance reforms in its foreign trade system. New business models such as cross-border e-commerce, digital platforms, and online transactions have expanded rapidly. These developments require formal legal recognition and consolidation. At the same time, uncertainty in the global economic and trade environment has increased. Unilateral measures and trade restrictions have become more frequent, and trade frictions have shown signs of persistence. Legal refinement responds both to domestic transformation and to mounting external pressures.

Intellectual property provides one example. In 2025, the Office of the United States Trade Representative released its Special 301 Report, placing several countries on its Priority Watch List and continuing to raise concerns over online piracy, counterfeit goods, and technology transfer issues, including policies related to China. Chinese authorities have highlighted on multiple occasions that such assessments don't reflect actual progress, emphasizing important ongoing improvements in intellectual property legislation and enforcement, and calling for the strengthening of cooperation on an equal footing. The differences, however, highlight continued competition and negotiation within the global intellectual property regime.

Against this backdrop, China's Commerce Minister Wang Wentao stated at a meeting of the Standing Committee of the National People's Congress that corresponding countermeasures should be further refined at the legal level. The revised law explicitly emphasizes safeguarding national security and development interests, while also underscoring alignment with high-standard international economic and trade rules and promoting rules-based opening-up. Compared with previous versions, national security provisions now have broader coverage, extending across trade investigations, trade remedies, intellectual property protection, and countermeasure mechanisms.

The trade remedy system has been further clarified. The legal basis for anti-dumping, countervailing, safeguard measures, and anti-circumvention investigations is more explicit, and mechanisms addressing circumvention have been strengthened. Under specific circumstances, the law authorizes restrictive measures against overseas individuals and entities. These provisions expand the available policy toolkit and create clearer institutional links between opening up and risk management.

Digital trade and green trade are newly emphasized. Dedicated provisions support cross-border e-commerce, electronic documentation, and digital development, while encouraging the import and export of green and low-carbon products and promoting the establishment of a green trade system. These measures respond directly to the global shift toward digitalization and decarbonization, while providing a legal foundation for emerging domestic sectors.

From an institutional perspective, the revision maintains the direction of opening up but introduces greater structural balance. The law no longer focuses solely on trade promotion. Instead, it integrates openness, order, security, and rule alignment within a single framework. Opening up remains central, yet the system's capacity to respond to risks has been strengthened.

Globally, several countries and regions adjusted trade arrangements in early 2026. The European Union signed trade agreements with India and the Mercosur trade bloc is pending ratification, and the US made tariff adjustments linked to its trade review mechanisms. These developments primarily concern agreements or tariff schedules rather than comprehensive updates to national foreign trade legislation.

By contrast, China's revision represents a foundational legislative update at the national level. It covers foreign trade administration, remedies, intellectual property, digital trade, and related areas, reflecting a systematic approach.

From 1994 to the present, the Foreign Trade Law has evolved over more than three decades. The international environment has shifted, trade models have transformed, and rule competition has intensified. Legal revision serves as an institutional response to these changes. The implementation of the new law signals that China, while continuing to pursue opening up, is strengthening its legal framework to safeguard development interests and provide clearer rules for future foreign trade operations.

(Cover via VCG)