On April 7, 2026, China turned supply chain decisions into national security decisions. The regulations took effect the same day. No transition period. These regulations, issued as State Council Order No. 834, give Chinese authorities a formal mechanism to investigate and punish foreign governments, organizations, companies, and individuals whose conduct is deemed harmful to China’s industrial or supply chain security. For companies already navigating U.S. tariffs, export controls, forced labor rules, and sanctions, this creates a conflict-of-laws problem where a careless procurement email can cause a foreign executive to be banned from leaving China. What a U.S. compliance officer calls due diligence, a Chinese regulator may call discrimination. What a European customer calls forced labor compliance, China may call interference with normal commercial transactions. What a board calls China risk reduction, Beijing may call politically motivated supply chain disruption.

Full report : China’s New Supply Chain Security Rules Raise the Risks for Foreign Companies.