China tightens supply‑chain exits

China has moved to make it harder for multinationals to pull production and sourcing out of the country, using new supply-chain security rules and tighter scrutiny of information gathering. (nytimes.com) The State Council’s new industrial and supply-chain security regulations took effect on April 7, 2026, the day they were issued. China’s government said the rules create risk monitoring, emergency response tools and investigations into actions that damage Chinese supply chains. (english.www.gov.cn) China’s Justice Ministry said the rules also target unauthorized collection of supply-chain information inside China and allow authorities to investigate foreign governments, organizations or individuals whose actions threaten Chinese supply-chain security. The ministry said penalties can include limits on trade, investment, transactions and entry into China. (moj.gov.cn) The shift lands as foreign companies are already reworking sourcing maps after years of tariffs, export controls and political tension between Washington and Beijing. The New York Times reported that some companies now face administrative pressure when they try to redirect orders from Chinese factories to plants in Vietnam, India or elsewhere. (nytimes.com) Boardrooms are also treating tariffs as a lasting cost, not a short-term shock. A PwC survey cited by Fortune found 86% of United States executives now see tariffs as a “permanent planning assumption” that will outlast President Donald Trump’s administration. (fortune.com) In the United States, Customs and Border Protection said on April 14 that its tariff refund portal will open at 8 a.m. Eastern time on April 20 to start electronic returns on an estimated $127 billion in tariffs. That refund process shows how much money is tied up in trade barriers even as companies keep redesigning supply chains around them. (supplychaindive.com) Beijing is making these changes while its domestic economy remains uneven. China reported a record 2025 trade surplus of nearly $1.2 trillion in January, while a March Reuters poll found property investment is expected to fall 10.3% in 2026 and sales 6.5%. (money.usnews.com 1) (money.usnews.com 2) China also revised its Foreign Trade Law, with the changes taking effect on March 1, 2026. The government said the updated law adds national security language and ties foreign trade more directly to broader state development goals. (english.www.gov.cn) Foreign business groups and advisers have warned for years that China’s compliance environment is becoming harder to navigate. The United States International Trade Administration said companies report delayed approvals, increased regulatory scrutiny and concern over broader use of anti-sanctions and counterespionage tools. (trade.gov) The result is a narrower path for companies trying to keep access to China’s factories while building backups elsewhere. Beijing is still saying it supports stable global supply chains, but the new rules give officials more ways to challenge exits they see as a security risk. (english.www.gov.cn)