China Amends Trade Law: Boosts Trade War Power, Tightens Export Control, Eyes Global Trade Bloc

• China approved significant amendments to its foreign trade law on December 27, effective March 1, 2026.
• The changes aim to strengthen China's capacity to fight trade wars, increase control over sensitive exports like strategic minerals, and further open its economy.
• The amendments also seek to align China with standards for potential membership in the CPTPP, focusing on digital, green trade, and intellectual property.
• The law clarifies China's right to retaliate against export restrictions and requires the government to provide solid reasons for actions affecting private companies.
• This move comes amid global pressures, China's efforts to reduce US dependence, and past issues like the Shein ban and Japanese seafood restrictions.

Why It Matters: China's new trade law boosts its trade war capabilities, tightens export control, and eyes global trade blocs.