Trade Strategy and Regulation: China Intensifies its Export Control Framework

A recent report highlights a major shift in Beijing’s trade strategy, with the use of export restrictions nearly tripling over the past five years. This development marks a significant step in China’s use of regulatory tools to protect its industrial interests and secure its supply chain amidst rising international trade pressures.

The volume of these measures has increased dramatically: between 2021 and 2025, China issued 30 restrictions, compared to only 11 in the previous period. These measures primarily target rare earths, which are critical resources for the global tech industry. On March 31, Beijing introduced a broad legal framework making it illegal to “harm the security of the country’s industrial and supply chains.” For global firms, this broad language necessitates a more robust approach to compliance and internal audits.

Furthermore, the regulation grants expanded investigative powers to Chinese authorities, who can now sanction anyone “conducting information collection activities related to industrial and supply chains in China.” Most notably, the law allows for coercive measures, including exit bans on individuals found guilty of violations. As geopolitical tensions persist, particularly regarding Taiwan, maintaining strict ECCN classification and comprehensive screening of information flows has become a vital necessity. This shift underscores the increasing complexity of navigating the Chinese regulatory landscape in 2026.