China’s New Foreign Trade Law Aims to Boost Trade Amid Profit Decline

• New Foreign Trade Law effective March 1, 2025, with 11 chapters and 83 articles focusing on national security and development.

• Reforms elevate negative list for cross-border services, digital trade promotion, and green systems to legal status.

• China’s industrial profits fell 13.1% in November 2025 per National Bureau of Statistics data, prompting trade enhancements.

China’s Foreign Trade Law update effective March 1, 2025 drives digital trade growth and reforms amid profit drops. Explore key changes, impacts on economy, and strategic shifts for high-level opening-up. Read now for insights!

What is China’s New Foreign Trade Law?

China’s new Foreign Trade Law represents a comprehensive overhaul approved by the Standing Committee of the National People’s Congress, set to come into force on March 1, 2025. Originally enacted in 1994 and revised in 2004, with minor amendments in 2016 and 2022, this version aligns with the CPC Central Committee’s directives for high-quality foreign trade development. It comprises 11 chapters and 83 articles, emphasizing service to national economic goals while prioritizing sovereignty, security, and development interests.

How Does the New Law Support Digital Trade and New Business Models?

The law establishes a robust legal framework for emerging trade practices. Key reforms include the negative list management system for cross-border service trade, alongside explicit support for new foreign trade forms and models. According to the Committee’s statement, these measures have been “elevated to legal systems,” including acceleration of digital trade development and green trade systems.

This alignment aims to match high-standard international economic and trade rules selectively, fostering China’s role in shaping global standards. Officials must now integrate compatible international norms that advance national strategies, while gaining tools to formulate new rules. Enhanced countermeasures and legal responsibilities bolster responses to foreign trade disputes, providing stronger enforcement mechanisms.

National Bureau of Statistics data underscores the urgency: industrial profits plunged 13.1% in November 2025 from the prior year, following a 5.5% drop in October. Cumulative profits for the first 11 months rose marginally by 0.1%, a slowdown from earlier 1.9% growth. Bloomberg Economics noted expectations of steeper declines, attributing pressures to weak domestic demand and industrial deflation, despite U.S. tariff truces.

Frequently Asked Questions

When does China’s new Foreign Trade Law take effect?

The new Foreign Trade Law, approved by the Standing Committee of the National People’s Congress, comes into force on March 1, 2025. It builds on prior versions to promote high-quality development and adapt to global trade changes, ensuring legal support for operators’ rights.

What are the main reforms in China’s updated Foreign Trade Law?

Major reforms include legalizing the negative list for cross-border services, advancing digital and green trade, and aligning with international rules on China’s terms. The law strengthens countermeasures against trade disputes, serving national economic priorities while protecting sovereignty and security interests, as outlined in official statements.

Key Takeaways

• Comprehensive Overhaul: 11 chapters and 83 articles prioritize national interests, high-quality trade growth, and global alignment.
• Digital and Green Focus: Elevates new models like digital trade and green systems to legal frameworks amid profit challenges.
• Strategic Enforcement: Bolsters countermeasures and responsibilities to safeguard trade operators in disputes.

Conclusion

China’s new Foreign Trade Law, effective March 1, 2025, solidifies reforms for digital trade and high-level opening-up against a backdrop of industrial profit declines reported by the National Bureau of Statistics. By embedding support for innovative models and robust countermeasures, it positions China as a stronger trading power. Stakeholders should monitor implementation for opportunities in evolving global dynamics.