Chinese International Trade Law
Introduction to Chinese International Trade Law
China’s international trade legal framework has undergone profound transformation since its accession to the World Trade Organization (WTO) on 11 December 2001. The accession process required comprehensive revision of domestic trade legislation, including the enactment and amendment of over 2,000 laws, regulations, and administrative measures. The contemporary framework is anchored by the Foreign Trade Law of the People’s Republic of China (revised 2022), the Customs Law, the Tariff Law, the Export Control Law (2020), the Anti-Dumping Regulations, and the Anti-Subsidy Regulations. Trade policy is formulated and administered by the Ministry of Commerce (MOFCOM), the General Administration of Customs (GAC), and the State Council’s Customs Tariff Commission.
Constitutional and Hierarchical Framework
The Constitution of the People’s Republic of China (1982, as amended) does not contain express provisions on foreign trade but establishes the legal basis for the socialist market economy under Article 15. The hierarchy of trade laws comprises national laws enacted by the National People’s Congress (NPC) and its Standing Committee, administrative regulations issued by the State Council, departmental rules issued by MOFCOM and other ministries, and local regulations. International treaties, including WTO agreements, take precedence over domestic law in case of conflict under Article 142 of the General Principles of Civil Law, subject to reservations. The Report on the Work of the Supreme People’s Court has confirmed that WTO agreements are not directly applicable in Chinese courts and must be implemented through domestic legislation.
Foreign Trade Law 2022 Revision
The Foreign Trade Law of the People’s Republic of China, originally enacted in 1994 and revised in 2004, 2016, and 2022, serves as the foundational statute for China’s trade regime. The 2022 revision, effective 1 July 2022, introduced significant amendments including enhanced provisions on trade retaliation, expanded authority for MOFCOM to investigate and respond to foreign trade barriers, and strengthened legal basis for export controls. The revised Law codifies China’s right to take countermeasures against discriminatory trade practices by foreign countries, reflecting the escalating US-China trade conflict. Article 39 of the Foreign Trade Law authorises trade retaliation measures consistent with China’s WTO commitments. The revision also expanded the definition of foreign trade operators and simplified registration procedures, aligning with the Foreign Investment Law 2019 and the Regulation on Optimising the Business Environment.
Tariff Administration
China’s tariff regime is governed by the Tariff Law of the People’s Republic of China (2024) and administered by the State Council Customs Tariff Commission. The Customs Import and Export Tariff of the People’s Republic of China adopts the Harmonized Commodity Description and Coding System. China’s applied MFN tariff rates have declined from an average of approximately 15% at WTO accession to around 7% for industrial goods and 15% for agricultural goods. The 2024 Tariff Law codified the legal framework for tariff adjustment, imposing anti-dumping and countervailing duties, and applying retaliatory tariffs.
China has utilised tariff policy as an instrument of trade negotiation and retaliation. Following the imposition of US Section 301 tariffs, China imposed retaliatory tariffs on US imports through a series of State Council Tariff Commission announcements. The retaliatory tariffs were structured to maximise political impact on US agricultural and manufacturing exporters while maintaining China’s WTO-bound tariff obligations to the extent possible, though they were challenged in DS543 — United States — Tariff Measures on Certain Goods from China and in counter-disputes initiated by China.
Export Control Law 2020
The Export Control Law of the People’s Republic of China, effective 1 December 2020, provides a unified legal framework for controls on dual-use items, military products, nuclear goods, and other goods, technologies, and services that may threaten national security. The Law consolidates previous fragmented regulations and establishes a comprehensive licensing regime administered by MOFCOM in coordination with the State Administration of Science, Technology and Industry for National Defence (SASTIND) and the Ministry of Industry and Information Technology (MIIT).
The Export Control Law establishes control lists, end-user and end-use verification (“end-user commitment” system), and the Unreliable Entity List mechanism. Exporters must obtain licences and conduct internal compliance programmes. The Law prohibits exports that endanger China’s national security and interests, fulfil international obligations, or threaten international peace and stability. Violations may result in administrative penalties, revocation of export rights, monetary fines, and criminal liability. The Law includes extraterritorial application provisions, permitting controls on re-exports of controlled items.
Trade Remedies: Antidumping and Subsidies
China’s trade remedy regime is established by the Anti-Dumping Regulations of the People’s Republic of China (2001, revised 2004) and the Anti-Subsidy Regulations, which implement WTO Agreement on Antidumping and ASCM commitments. MOFCOM’s Trade Remedy and Investigation Bureau conducts investigations and recommends measures to the State Council Tariff Commission. China has become an increasingly active user of antidumping measures, particularly in the chemicals, steel, and paper sectors.
The Anti-Dumping Regulations establish procedures for complaint initiation, investigation, preliminary and final determinations, and duty imposition. MOFCOM Public Notice practice includes detailed margin calculations based on constructed normal value where domestic sales are not made in the ordinary course of trade. China’s regime has been subject to WTO challenge in multiple disputes, including DS397 — China — Anti-Dumping and Countervailing Duty Measures on Broiler Products from the United States and DS414 — China — Countervailing and Anti-Dumping Duties on Grain Oriented Flat-rolled Electrical Steel from the United States.
Dual-Use Export Controls
China operates an extensive dual-use export control regime under the Export Control Law and the Regulation on the Export Control of Missile-Related Items and Technologies, the Regulation on the Export Control of Nuclear Products, and the Regulation on the Export Control of Dual-Use Biological Agents. Controlled items are listed in the Catalogue of Dual-Use Items Subject to Export Control, which is updated periodically by MOFCOM in coordination with relevant ministries. China has strengthened its participation in multilateral export control regimes, applying for membership of the Missile Technology Control Regime (MTCR) and the Wassenaar Arrangement, though its applications remain pending.
WTO Dispute Settlement and Trade War Context
China has been an active participant in WTO dispute settlement, having brought complaints against US antidumping methodology, US Section 301 tariffs, and EU steel safeguard measures, while defending challenges to its own trade remedy and intellectual property measures. The US-China trade war generated numerous disputes, including DS543 — United States — Tariff Measures on Certain Goods from China, DS565 — China — Tariff Concessions, and litigation concerning intellectual property enforcement under DS542 — China — Enforcement of Intellectual Property Rights.
Conclusion
Chinese international trade law has evolved from a transitional accession regime to a mature legal framework reflecting China’s status as the world’s largest trading nation. The 2020 Export Control Law and the 2022 Foreign Trade Law revision demonstrate China’s adaptation to strategic competition, incorporating trade retaliation and national security controls as instruments of economic statecraft. The legal framework operates within the constraints of WTO commitments while asserting increasing regulatory autonomy in export controls, investment screening, and trade remedy enforcement.