According to press reports, China reportedly published two State Council decrees in March and April 2026 to expand its legal toolkit on two fronts: supply chain security and countering foreign sanctions extraterritoriality. The first instrument would establish a framework requiring companies in strategic supply chains to adopt security measures, including mandatory reviews and certifications. The second instrument would provide a legal basis for Chinese companies and those operating in China to refuse compliance with foreign unilateral sanctions that Beijing considers violations of international law. The official text has not been released yet, so detailed implications remain preliminary.
These regulations are part of China’s broader strategy to strengthen its regulatory sovereignty and protect its commercial interests against unilateral coercive measures, particularly from the United States and the European Union. The move follows earlier measures such as the Blocking Statute (2021) and data security and export control rules, but it marks the first time that anti-extraterritoriality and supply chain security tools are articulated in a single package. The exact scope will only be clear once the official texts are published.
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