Two Regulations, One Direction: China’s Expanding Economic Security Playbook

On April 7, 2026, China’s State Council issued two new regulations strengthening its legal framework for supply chain security and countering “improper extraterritorial jurisdiction by foreign states.”¹ Together, the measures introduce more structured regulatory mechanisms with potential compliance and operational implications for multinational companies operating in or touching the China market.

Establishment of a Standalone Supply Chain Security Regime

Regulations on Industrial and Supply Chain Security (Decree No. 834) represent China’s first dedicated administrative regulation addressing industrial and supply chain security, which fills a longstanding gap in the country’s legal framework, according to the spokesman for China’s Ministry of Justice (MOJ). Structurally, Decree No. 834establishes an integrated framework built around three core mechanisms.