On Tuesday, China introduced new regulations governing the security of supply chains. These measures grant authorities the power to conduct investigations and take countermeasures against foreign organizations deemed a threat to national supply chains.

The rules, published by China’s State Council, took effect immediately upon release. They are aimed at strengthening the security of industrial and manufacturing supply chains in key sectors, while also providing for the development of international cooperation.

Under the new system, Chinese agencies can carry out security inspections and impose countermeasures on foreign organizations if their activities are considered a risk to supply chain security. This includes unauthorized research or data collection related to supply chains within China’s territory.

The document also encourages domestic enterprises to expand and diversify their supply channels and to participate in international cooperation. China has stated its intention to maintain a balance between development and security, as well as to uphold a high level of openness to the outside world.