Revised law to spur high-level opening-up

The revised Foreign Trade Law will strengthen China's legal framework for high-level opening-up, promote high-quality trade growth, and enhance protection for businesses amid rising protectionism worldwide, experts and officials said.

The updated provisions, which vow to further benchmark the law against international economic rules and safeguard the multilateral trading system, will also help foster a more enabling climate for mutually beneficial global cooperation and advance an open world economy, they added.

The revised law, which was passed on Saturday at a session of the Standing Committee of the National People's Congress, China's top legislature, will take effect on March 1.

The 11-chapter, 83-article law is formulated to advance high-standard opening-up, promote high-quality development of foreign trade, maintain foreign trade order, and protect the legitimate rights and interests of foreign trade dealers, as well as safeguard national sovereignty, security and development interests, according to the law's general provisions.

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 year marks its second comprehensive revision.

Wang Xuekun, head 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.

"These provisions represent our institutional commitment to high-standard opening-up," he said. "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."

The revision includes provisions on advancing China's efforts to actively align with high-standard international economic and trade rules, and to participate in the formulation of international economic and trade regulations.

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 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.

"These reform, innovation and development outcomes need to be consolidated in a timely manner through the rule of law," Wang said in September, when explaining the draft revision to lawmakers.

Over the course of this year, the ministry has unveiled dedicated guidelines to boost services exports and expand green trade.

Cui Fan, a professor of international trade at the University of International Business and Economics in Beijing, said that as multilateral frameworks come under strain and new digital and green standards emerge, China is institutionalizing its capacity to engage and adapt within a rules-based system.

To further optimize the trade environment, the revised law emphasizes strengthening the protection of intellectual property rights concerning foreign trade and establishing a trade adjustment assistance system to stabilize industrial and supply chains.

Additionally, the revision equips China with legal instruments to respond to external challenges and supplements and refines corresponding countermeasures.