In a major shift for global logistics, the Chinese State Council enacted two pivotal measures in early 2026: Order No. 834 and Order No. 835. Commonly recognized as the China Supply Chain Security Regulations, these decrees took immediate effect in April 2026, dramatically expanding Beijing’s oversight of industrial ecosystems. For shipping and procurement experts, these regulations present unprecedented compliance challenges by classifying domestic supply chain stability as a matter of national security.
The new China Supply Chain Security Regulations target actions perceived as threatening the nation’s industrial foundation, establishing a complex landscape for international logistics. Crucial developments include:
- Heightened Audit Scrutiny: Standard supply chain due diligence, including supplier ESG audits and on-site inspections, now face stringent regulatory oversight.
- Countermeasures on Extraterritorial Jurisdiction: Decree 835 empowers authorities to penalize foreign entities enforcing international sanctions that disrupt local supply chains.
- Reshoring Risks: Shippers employing ‘China Plus One’ strategies or shifting capacity away from Chinese suppliers may be flagged as a security threat.
- Stricter Export Registrations: Following late 2025 changes, all exporters must be fully registered with Chinese tax authorities, preventing third-party export declarations.
Logistics professionals must urgently reassess their compliance frameworks. Complying with foreign regulations, such as U.S. or EU directives, might now inherently conflict with the new Chinese legal requirements. Shipping companies must conduct comprehensive supply chain risk assessments while carefully navigating the widening gap between Western compliance mandates and China’s assertive economic security posture.
References
Linklaters: China – New rules on supply chain security. China Briefing: China Supply Chain Regulations. Squire Patton Boggs: China’s New Supply Chain Security Regime. Art of Procurement: Why is nobody talking about China’s new supply chain regulations? Pinsent Masons: China’s new supply chain security laws. Art of Supply. China Briefing. New Chinese Export Compliance Regulations Effective 1 October 2025.
