(Yicai) April 8 -- China has issued its first administrative regulations aimed at safeguarding the country’s industrial and supply chains.

Premier Li Qiang signed a State Council decree on March 31 implementing the new regulations, which came into force as soon as they were released, Xinhua News Agency reported yesterday. The new rules will enhance the resilience and security of China’s industrial and supply chains, safeguarding economic and social stability as well as national security, it said.

They are a key step for China in responding to containment and encirclement by the United States and other Western countries, proactively managing its international space, and shaping its external environment, noted Wang Minghui, a researcher in the State Council’s development research center.

While China already has the world's most complete industrial system, it still depends on others for some critical technologies, while bottlenecks persist in key components, basic materials, and advanced equipment, Wang noted.

The regulations are an important measure to address the bottlenecks and pain points in China’s industrial and supply chains, fill the gaps in legal safeguards, and prevent and resolve major risks, he added.

The regulations strengthen the risk warning, prevention, and emergency response systems, and set out procedures for security probes, countermeasures, and extraterritorial jurisdiction. For technological bottlenecks, such as integrated circuits and industrial machine tools, they require the authorities to list up key areas, build physical and capacity reserves, and increase investment in research and development to boost resilience.

As a dedicated foreign-related security measure, the key strength of the new rules lies in well-designed countermeasures against actions that harm China’s industrial and supply chain security, said Liao Shiping, a professor at the Beijing Normal University's Law School. They strengthen the coherence of foreign-related security legislation and expand the country's toolkit for foreign-related legal disputes, Liao added.

The regulations stipulate different countermeasures for different actors. If a foreign country, region, or international organization violates the basic principles of international law, China may restrict or ban the import and export of goods and technologies and trade in services, as well as impose special fees.

If a foreign organization or individual violates normal market-trading principles, China may curb their investment in the country or bar domestic entities and individuals from engaging in related transactions, cooperation, or other activities with them.

Editor: Martin Kadiev