MOC issues new steps for investigating threats to supply chain

The Ministry of Commerce unveiled on Wednesday a detailed set of procedures for investigating threats to China's industrial and supply chain security.

The rules for industrial and supply chain security investigations, which took effect immediately upon publication, were formulated under the Regulations on the Security of Industrial and Supply Chains issued by the State Council, China's Cabinet, earlier this year, the ministry said.

The rules provide a framework for the ministry to investigate foreign actions that may harm China's supply chain security, and to impose countermeasures against countries, organizations or individuals found to be engaging in damaging activities.

Under the rules, the ministry may initiate investigations when foreign countries, regions or organizations impose discriminatory measures on China's industrial and supply chains, or when foreign entities disrupt normal transactions with Chinese parties, take discriminatory actions, or cause or threaten harm to China's supply chain security.

If an investigation confirms that foreign measures have harmed China's supply chain security, the ministry, along with other departments, may impose countermeasures, including trade restrictions, investment bans and sanctions.

The ministry said it will carry out industrial and supply chain security investigations in accordance with the law, safeguard the legitimate rights and interests of Chinese enterprises, and uphold the stability and smooth functioning of global industrial and supply chains.