On 22 December 2025, a draft revision to China’s <span class="news-text_italic-underline">Foreign Trade Law</span> was submitted for a second reading at the ongoing session of the Standing Committee of the National People’s Congress. The proposed amendments reflect China’s broader policy objectives of fostering high-quality foreign trade growth while responding to technological change and sustainability priorities.
The revised draft introduces new provisions to support the development of digital trade and the digital transformation of foreign trade processes. In particular, it proposes measures to promote a cross-border financial services system and facilitate the use of digital tools in international trade.
Key elements include support for the international mutual recognition of digital certificates and electronic signatures. These measures are intended to reduce procedural barriers, enhance efficiency in cross-border transactions and provide a clearer legal basis for the use of digital documentation in trade activities.
In line with China’s green development strategy, the draft revision incorporates provisions to accelerate the establishment of a green trade system. It supports the development of standards, certification and labelling frameworks for green products, aiming to enhance the credibility and international acceptance of environmentally sustainable goods.
The revised draft also emphasises the importance of building a specialised foreign trade talent workforce. By linking green trade development with skills and capacity-building, the amendments seek to strengthen the long-term competitiveness of China’s foreign trade sector.
The proposed amendments clarify and codify the common modes of services trade, encouraging international services transactions through cross-border supply, consumption abroad, commercial presence and the movement of natural persons. This reflects a more comprehensive and internationally aligned approach to regulating services trade.
The draft also includes provisions to enhance China’s role as a trader of quality, safeguard a fair and equitable international economic and trade order as well as strengthen the functions and service capacity of trade promotion platforms. These measures are intended to support exporters and service providers while reinforcing China’s engagement with global trade rules.
Recognising that a significant proportion of foreign trade operators are small and micro-sized enterprises, the revised draft adopts a more flexible approach to administrative penalties. It removes minimum fine thresholds, allowing regulators to calibrate penalties based on the specific circumstances of each case. This adjustment is designed to improve proportionality in enforcement and reduce undue compliance burdens on smaller market participants.
If adopted, the amendments would represent a meaningful update to China’s <span class="news-text_italic-underline">Foreign Trade Law</span>, aligning it more closely with contemporary trade practices driven by digitalisation and sustainability. Businesses engaged in cross-border trade with China should monitor the legislative process closely and assess the potential impact on compliance, digital trade operations and green supply chains.
