Introduction 

On December 27, 2025, the Standing Committee of the National People’s Congress officially promulgated the newly revised Foreign Trade Law of the People’s Republic of China (the “2026 Revision”). Set to take effect on March 1, 2026, this 11-chapter, 83-article framework represents a legislative pivot toward a “strong trading nation” strategy, balancing high-quality growth with the safeguarding of national sovereignty and security.

1. The New Pillar: Intellectual Property (IP) in Foreign Trade

The 2026 Revision introduces a dedicated focus on the protection of trade-related intellectual property rights to elevate the compliance and risk response capabilities of operators.

· General Applicability: Article 2 establishes that the law applies not only to traditional trade in goods, technologies, and services but also specifically to “the protection of intellectual property rights related to foreign trade”.

· Enforcement & Investigations: Under the new framework, the Ministry of Commerce is authorized to lead investigations into IP infringements that “endanger the order of foreign trade”. This may involve measures against foreign entities that fail to provide “adequate and effective protection” for the IP of Chinese individuals or organizations.

· Targeting Licensing Abuses: The law explicitly targets restrictive licensing practices, such as portfolio license bundling and clauses that challenge the validity of standard-essential patents.

2. Normalization of National Security and Sovereignty Safeguards

The 2026 Revision elevates national security from a general principle to a substantive, actionable requirement.

· Legislative Intent: Article 1 now explicitly includes “maintaining national sovereignty, security, and development interests” as a core purpose of the legislation.

· Prohibitions and Restrictions: Article 18 authorizes the state to prohibit or restrict the import or export of goods and technologies “to maintain national security, social public interests, or public morals”.

· Trade Adjustment Assistance: Article 55 establishes a “Trade Adjustment Assistance System” designed to help industries cope with trade risks and environment changes, thereby stabilizing industrial and supply chains.

3. Integrating Digital and Green Trade into Law

Reflecting modern economic priorities, the revised law formally codifies support for new trade models.

· Digital Trade Governance: The 2026 Revision formally includes digital trade within its scope, emphasizing the establishment of a digital trade governance system and the improvement of regulatory measures for digital innovation.

· Green Trade Systems: Article 61 and associated reform measures encourage the “accelerated development of a green trade system” and support for low-carbon trade practices.

· Service Trade Modes: Article 27 encourages international trade in services through four specific modes: “cross-border delivery, overseas consumption, commercial presence, and movement of natural persons”.

4. Compliance and Countermeasure Toolkit

The 2026 Revision significantly expands the “legal toolkit” for responding to external challenges and discriminatory measures.

· Countermeasures: Article 40 (and related provisions) empowers the government to take “corresponding measures” against any country or region that adopts discriminatory prohibitions or restrictions against China.

· Compliance for Operators: Article 37 prohibits deceptive practices such as “forging or altering certificates of origin” or “evading certification, inspection, or quarantine”.

· Enhanced Liability: Chapter 10 outlines severe penalties for violations, including prohibiting offenders from engaging in foreign trade for one to five years (Article 76) and denying customs clearance or financial services during that period (Article 77).

Conclusion

The 2026 Foreign Trade Law provides the legal backbone for China’s “institutional opening-up” while simultaneously sharpening its “teeth” for trade defense. For legal practitioners, the focus must shift to ensuring that all client activities align with the now-codified requirements for National Security Reviews (Article 18) and IP Compliance (Chapter 5) to avoid the enhanced penalties of the new era.