Significant legal reforms and policy updates reshape China's international trade landscape
As we progress through 2025, China's foreign trade industry has witnessed the introduction of several significant new regulations and policies aimed at modernizing its legal framework, enhancing compliance requirements, and promoting sustainable growth. These changes reflect China's ongoing efforts to adapt to the evolving global trade environment while strengthening its position in the international marketplace.
Comprehensive Revision of Foreign Trade Law
The most substantial regulatory change comes from the draft amendment to China's Foreign Trade Law, which was submitted to the Standing Committee of the National People's Congress for review in September 2025. This extensive revision comprises 11 chapters and 80 articles that comprehensively update the existing legal framework.
Key aspects of the revised Foreign Trade Law include:
- Enhanced National Security Provisions: The amended law explicitly includes "safeguarding national sovereignty, security, and development interests" in its legislative purposes while adding provisions requiring foreign trade work to serve national economic and social development.
- International Standards Alignment: The revision formally mandates China to actively align with high-standard international economic and trade rules while participating more substantially in international trade rule-making.
- New Trade Mechanisms: The draft elevates several reform initiatives to legal institutions, including the cross-border service trade negative list management system, support for developing new trade formats and models, encouragement of digital trade development, and acceleration of green trade systems.
- Intellectual Property Protection: The amended law emphasizes enhancing IP protection related to foreign trade, improving compliance levels, and strengthening risk response capabilities for trade operators.
- Trade Adjustment Assistance System: A new mechanism aims to stabilize industrial and supply chains while encouraging professional service institutions to improve their networks to provide high-quality services for foreign trade operators.
- Expanded Countermeasure Tools: The revised law enriches China's legal toolbox for international disputes by supplementing countermeasures. It now allows for prohibiting or restricting foreign trade activities with individuals or organizations that endanger China's national sovereignty, security, or development interests. It also prohibits any support or assistance for circumventing these countermeasures.
Stricter Export Declaration Requirements
Effective October 1, 2025, new rules from the State Taxation Administration (Announcement 2025 No. 17) impose stricter requirements on export declarations. These regulations mandate that:
- Proxy export enterprises must simultaneously report actual client information and export values. Failure to comply will result in treatment as self-operated exports with corresponding enterprise income tax obligations.
- All customs declarations must accurately declare actual cargo owner information, aiming to eliminate "buyout exports" and "named exports" practices.
- Individuals will no longer qualify as cross-border export tax subjects and cannot participate in relevant export business declarations.
Non-compliant enterprises face severe penalties, including:
- Fines ranging from 5% to 30% of the goods' value
- Credit rating downgrades
- Potential criminal liability for serious violations
The new rules offer differentiated compliance suggestions for businesses at various development stages, encouraging small and medium sellers to choose formal agents, growing sellers to consider establishing Hong Kong companies, and mature enterprises to obtain independent import-export rights.
Regional Policy Innovations: Beijing E-Town's Example
Beyond national-level regulations, regional policies also reflect evolving approaches to foreign trade. Beijing Economic-Technological Development Area (E-Town) introduced upgraded policies in September 2025:
- "New Foreign Trade 8 Measures" represent a comprehensive upgrade from previous policies, increasing support and exploring diversified assistance methods.
- Higher subsidies for overseas exhibitions, with reimbursement rates increasing from 30% to 40%.
- Financial rewards for companies obtaining Customs AEO Advanced Certification.
- Subsidies for export credit insurance premiums to reduce international expansion costs.
These policies aim to help Beijing E-Town cultivate more than 10 companies with over 10 billion RMB in foreign trade, 30 companies with over 1 billion RMB, and 100 companies with over 100 million RMB by 2027.
Implications for Foreign Trade Enterprises
The new regulations and policies present both challenges and opportunities for businesses engaged in foreign trade:
- Enhanced Compliance Requirements: Companies must strengthen their compliance management systems, particularly regarding export declarations, intellectual property protection, and adherence to new regulatory frameworks.
- Increased Support Opportunities: Businesses can leverage various policy supports, including exhibition subsidies, credit insurance premium assistance, and rewards for high-level certifications.
- Greater Legal Certainty: The elevation of successful reform measures to legal institutions provides more stability and predictability for long-term planning.
- Need for Specialized Expertise: The complexity of new regulations increases the value of professional services specializing in foreign trade compliance, intellectual property, and international dispute resolution.
Conclusion
The new foreign trade regulations introduced in 2025 represent China's comprehensive approach to updating its trade framework for contemporary challenges and opportunities. By strengthening legal foundations, enhancing compliance mechanisms, and providing targeted support measures, these regulations aim to create a more robust, fair, and sustainable environment for foreign trade development.
As businesses adapt to these changes, those who proactively align their operations with the new requirements while leveraging available support mechanisms will be best positioned to succeed in China's evolving trade landscape. The continued emphasis on digital trade, green development, and high-standard international alignment suggests these areas will remain priorities for future policy development.
Post time: Sep-16-2025
