China's New Supply Chain Security Regulations May Prohibit Exit, Foreign Chambers of Commerce Express Concern
China has implemented new regulations on industrial and supply chain security, allowing measures against foreign entities harming its supply chain, including exit bans. Foreign business chambers in China have expressed concerns over the ambiguity and potential impact on business.
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- 📰 Published: April 24, 2026 at 14:22
- 🔍 Collected: April 24, 2026 at 14:31 (8 min after Published)
- 🤖 AI Analyzed: April 24, 2026 at 15:41 (1h 9m after Collected)
Central News Agency
(Central News Agency, Taipei, 24th) China previously announced the implementation of the "Regulations of the State Council on Industrial Chain and Supply Chain Security," which takes measures against foreign organizations and individuals that harm China's industrial and supply chain security, including potentially prohibiting or restricting exit. The American Chamber of Commerce in China and the European Union Chamber of Commerce in China recently expressed concern over this.
The Chinese State Council announced the implementation of the "Regulations of the State Council on Industrial Chain and Supply Chain Security" on April 7. The regulations, comprising 18 articles, state that if foreign countries and international organizations take discriminatory prohibitive or restrictive measures against China in terms of industrial and supply chains, or engage in acts that harm China's industrial and supply chain security, relevant departments have the right to conduct investigations.
The regulations also point out that if foreign organizations or individuals violate normal market transaction principles, interrupt normal transactions with Chinese citizens or organizations, or take discriminatory measures against Chinese citizens or organizations, causing damage or threats to China's industrial and supply chain security, relevant departments also have the right to conduct investigations.
The regulations further stipulate that investigation methods include questioning parties involved and reviewing or copying relevant documents and data. For organizations and individuals violating the regulations, relevant departments have the right to take measures, including prohibiting the import and export of relevant goods and technologies, and even prohibiting or restricting exit.
According to Agence France-Presse, Michael Hart, President of the American Chamber of Commerce in China, stated at an annual report press conference on the 23rd that the above regulations seem aimed at preventing companies from removing China from their supply chains; ironically, China is constantly building its own supply chains to ensure it does not rely on other countries.
Hart pointed out that most American companies have not moved their supply chains out of China, but some companies are seeking diversification. If the new regulations restrict companies from moving their supply chains, it will be a cause for concern.
The American Chamber of Commerce in China's annual report stated that over the past 12 months, US companies in China have seen some improvements in the regulatory environment and trends towards economic openness, but still face unequal market access and structural pressures in competition and investment.
The report stated that the European Union Chamber of Commerce in China criticized in early April that the "Regulations on Industrial Chain and Supply Chain Security" are vague, increasing the risks of doing business in or with China. The relevant regulations make it possible for some legitimate business decisions to be interpreted as threatening China's supply chain. Individual employees may be punished with exit bans, which is a cause for concern. (Editors: Chen Kaiyu/Zhu Jianling) 1150424
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(Central News Agency, Taipei, 24th) China previously announced the implementation of the "Regulations of the State Council on Industrial Chain and Supply Chain Security," which takes measures against foreign organizations and individuals that harm China's industrial and supply chain security, including potentially prohibiting or restricting exit. The American Chamber of Commerce in China and the European Union Chamber of Commerce in China recently expressed concern over this.
The Chinese State Council announced the implementation of the "Regulations of the State Council on Industrial Chain and Supply Chain Security" on April 7. The regulations, comprising 18 articles, state that if foreign countries and international organizations take discriminatory prohibitive or restrictive measures against China in terms of industrial and supply chains, or engage in acts that harm China's industrial and supply chain security, relevant departments have the right to conduct investigations.
The regulations also point out that if foreign organizations or individuals violate normal market transaction principles, interrupt normal transactions with Chinese citizens or organizations, or take discriminatory measures against Chinese citizens or organizations, causing damage or threats to China's industrial and supply chain security, relevant departments also have the right to conduct investigations.
The regulations further stipulate that investigation methods include questioning parties involved and reviewing or copying relevant documents and data. For organizations and individuals violating the regulations, relevant departments have the right to take measures, including prohibiting the import and export of relevant goods and technologies, and even prohibiting or restricting exit.
According to Agence France-Presse, Michael Hart, President of the American Chamber of Commerce in China, stated at an annual report press conference on the 23rd that the above regulations seem aimed at preventing companies from removing China from their supply chains; ironically, China is constantly building its own supply chains to ensure it does not rely on other countries.
Hart pointed out that most American companies have not moved their supply chains out of China, but some companies are seeking diversification. If the new regulations restrict companies from moving their supply chains, it will be a cause for concern.
The American Chamber of Commerce in China's annual report stated that over the past 12 months, US companies in China have seen some improvements in the regulatory environment and trends towards economic openness, but still face unequal market access and structural pressures in competition and investment.
The report stated that the European Union Chamber of Commerce in China criticized in early April that the "Regulations on Industrial Chain and Supply Chain Security" are vague, increasing the risks of doing business in or with China. The relevant regulations make it possible for some legitimate business decisions to be interpreted as threatening China's supply chain. Individual employees may be punished with exit bans, which is a cause for concern. (Editors: Chen Kaiyu/Zhu Jianling) 1150424
Choose to stand with the facts, every sponsorship you make is a force to protect press freedom
Download the Central News Agency "First-hand News" APP to stay updated with the latest news
The text, images, and audio/video on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.