Weekly China Insight – 10 April 2026

China formalizes supply chain security rules to expand countermeasure power

On 7 April, China’s State Council released a new set of regulations on industrial and supply chain security that took effect immediately. The 18-article regulation is designed to prevent supply chain risks, strengthen resilience, and safeguard economic and social stability as well as national security. The regulations establish a more systematic regime for key sectors, including rules for information sharing, risk monitoring and early warning, physical and capacity reserves, emergency response measures, and support for R&D in core technologies. A notable feature of the regulations is the creation of a formal investigation and countermeasure mechanism, allowing Chinese authorities to probe and respond to discriminatory restrictions by foreign countries and international organizations, as well as actions by foreign companies or individuals that disrupt normal transactions with Chinese entities or pose a substantial threat to China’s supply chain security. The regulations also prohibit unlawful supply-chain-related information collection inside China and require organizations and individuals in China to comply with the regulations.

The regulations fill a longstanding legal gap, strengthening the China’s foreign-related legal toolkit, and reflecting Beijing’s effort to balance continued opening-up with tighter protection against external pressure, sanctions, and supply chain disruption. The regulations grant Beijing greater capacity both to harden critical industrial links at home and to respond in a more rules-based manner to foreign economic coercion abroad.

China expands “Export to China” branding to turn domestic demand into a global trade platform

On 9 April, officials from the commerce ministry (MofCom) said the ministry is stepping up its “Export to China” campaign as part of a broader brand matrix that also includes “Buy in China” and “Invest in China,” aimed at leveraging China’s huge domestic market. MofCom spokesperson He Yadong said the “Export to China” brand is designed from the perspective of China’s trading partners and import-export balance, with the goal of boosting foreign exports to China, enriching domestic consumption, and making China’s market a globally shared marketplace. In 2026, MofCom has for the first time designated the UK, Spain, Kazakhstan, Kenya, and Thailand as annual theme countries, while recent import promotion events have already produced sizable results, including over RMB 30 billion in intended orders at the “Buy Global in Zhejiang and Consume in Hangzhou” event and RMB 150 billion in procurement demand at a matchmaking event in Qingdao. MofCom also said it will now organize more than 100 events around ten key themes, linking domestic and overseas promotion, online and offline channels, and pairing “Export to China” with “Buy in China” so imported products and services can enter the Chinese market.

MofCom’s push suggests Beijing is trying to reframe China’s market not only as a destination for investment and consumption, but also as a policy tool to deepen trade ties, support import growth, and strengthen China’s role as a demand anchor for trading partners.

China enhances oversight of state-owned enterprises’ overseas expansion

On 8 April, the China’s state-owned asset manager (SASAC) established a new Bureau of Overseas Foreign Investment Administration, led by Zhu Kai, to strengthen supervision of state-owned enterprises’ (SOEs) global operations. The new bureau will guide international expansion, optimize overseas asset allocation, enhance risk prevention, and manage crises, supported by four divisions covering operations, risk control, supervision, and emergency response. The creation of the new bureau comes as central SOEs’ overseas assets reached roughly RMB 8 trillion, spanning more than 180 countries and over 10,000 projects, while outbound investment rose 7.1% y/y to USD 174.38 billion last year.

The creation of the new bureau signals a shift toward more centralized, risk-sensitive governance of China’s global state-owned capital. Previously fragmented oversight of SOEs’ overseas operations across multiple agencies created coordination and compliance gaps, particularly in the context of rising geopolitical tensions and regulatory challenges abroad. The move aims to standardize SOEs’ overseas investment, reduce harmful competition among Chinese firms, while also equip Beijing with stronger institutional tools to defend its SOEs’ interests in an increasingly contested geopolitical environment.

ByteDance leverages OpenClaw and AI video to drive explosive model usage

On 2 April, ByteDance’s Volcano Engine announced sponsorship of OpenClaw and the launch of a China mirror site (ClawHub), alongside an AI-generated promotional video created by its Seedance 2.0 model, signaling deeper integration between AI agents and its SaaS ecosystem. The company reported that its Doubao large model surpassed 120 trillion daily token calls as of March, doubling in three months and potentially accounting for up to 85.7% of China’s total token usage. The surge is driven by rapid adoption of AI agents and AI video generation, with OpenClaw token consumption rising 52% m/m. ByteDance has focused on SaaS integration via Feishu and ArkClaw rather than launching multiple vertical agents, while simultaneously expanding its Skill ecosystem and security infrastructure. Meanwhile, Seedance 2.0 entered enterprise API public testing and began phased overseas rollout via CapCut, despite earlier copyright controversies that forced restrictions on real-face generation.

ByteDance’s strategy of coupling high-frequency AI agent usage with video generation positions itself to dominate MaaS demand. However, the success of this strategy will hinge on balancing ecosystem openness, pricing discipline, and the escalating global regulatory scrutiny over AI-generated content.