China Formalizes Industrial and Supply Chain Security Investigations

Key Takeaways

• China is elevating supply chain security from a macroeconomic goal to a legal framework, establishing a mechanism for risk monitoring, emergency reserves, and targeted countermeasures.

• The mechanism exacerbates existing conflict-of-law concerns for multinational companies.

• The impending release of “key sectors” for supply chain security should clarify the regulations’ scope.