China Reinforces National Security Measures

China is tightening its national security protocols across various sectors, enhancing its authority over civilian industries and wartime mobilization while also implementing new exit restrictions for citizens linked to sensitive technologies and export controls.

A revised national defense mobilization law will come into effect on October 1, detailing how civilian economic resources can be redirected towards defense needs, as reported by China’s Ministry of Commerce. These changes appear to coincide with China’s stricter regulations on the movement of individuals and sensitive technological knowledge amidst escalating competition with Washington.

“For the first time, the law makes clear that its goal is to ‘ensure a rapid transition between peace and war,’” noted Allen Zhang, a research assistant with The Heritage Foundation. “Although this doesn’t directly imply that China is preparing for conflict, it does raise questions about why such a change has occurred and why now. This revision is the first in 16 years and, in my opinion, indicates an adaptation to the new era of warfare influenced by artificial intelligence (AI).”

This move underscores China’s determination to prepare for potential conflict, especially as President Xi Jinping is expected to visit Washington next week.

The revamped law describes national defense mobilization as actions that facilitate a swift shift from peacetime to wartime, transforming China’s economic and societal frameworks into defense capabilities. The National People’s Congress Standing Committee approved this revision on August 28, and it will be effective beginning October 1.

“In response to ongoing bipartisan threats from the United States, China’s actions are understandable from their perspective,” remarked Steve Hanke, a professor of applied economics at Johns Hopkins University. “They are clearly preparing to defend against the perceived threat of a superpower. These moves are strategic and significant. The U.S. ought to realize that provocations can lead to retaliation. Still, one must never underestimate the folly of U.S. foreign policy.”

The White House, State Department, and the Chinese Embassy in Washington have not provided comments.

“This is an extension of China flexing its military muscles,” said Steven Bucci, a visiting fellow at the Heritage Foundation. “It will help them transition their economy more swiftly. It also exemplifies the dangers of establishing production facilities in China, as their operating rules differ significantly.”

Washington has long accused Beijing of coercive technology transfers and intellectual property theft to acquire foreign technologies. The U.S. remains concerned about forced technology transfers and state-sponsored theft of trade secrets in its dealings with China.

Military-related companies are required to stockpile necessary equipment and materials and establish teams capable of performing various defense roles, according to the Chinese Ministry of Commerce. These organizations also need to formulate plans and conduct drills ahead of any mobilization.

While the White House previously asserted that Xi Jinping assured that China would not attack Taiwan during President Trump’s tenure, this recent initiative indicates a significant move towards establishing a wartime economy.

Once national defense mobilization is declared, companies with military functions must rapidly adjust their production according to military needs, prioritizing military demands for energy, equipment, technology, data, or software, as outlined by the Chinese Ministry of Commerce. The law permits compensation for direct economic losses faced during these assignments.

If existing resources are insufficient for military requirements, local governments can requisition civilian assets following a national mobilization declaration, with a legal obligation for “any organization and individual” to obey requisition orders.

“I believe the primary intention is to project a definitive message to Taiwan: that China is committed to reunification by any necessary means and is prepared to mobilize all state assets—from military to commercial,” Zhang observed. “Beijing still prefers to achieve unity without direct conflict, and this amendment acts as a warning to Taipei that resistance may be futile.”

Tensions surrounding Taiwan remain high, with Beijing conducting consistent military exercises in the area, while Taiwan ramps up its own defense preparations. Taiwan’s defense budget for 2026 is projected to reach NT$949.5 billion, or about $29.8 billion in U.S. dollars, and includes additional proposed expenditures for missiles and drones.

This situation is critical because American businesses still have significant ties to Chinese manufacturing and supply chains, despite years of attempts to diversify away. In 2025, the U.S. imported approximately $309 billion worth of goods from China, with total trade between the two nations reaching around $415 billion.

These ties go beyond just finished goods, as U.S. manufacturers often rely on complex global supply chains involving components from China.

Notable American companies like Apple, Tesla, Nike, and Hasbro continue to depend on Chinese manufacturing. Apple’s supply chain outlines that Apple Watch assembly occurs in mainland China, and Tesla lists its Gigafactory and Megafactory in Shanghai as crucial production sites.

Nike reports that around 12% of its apparel was produced in Chinese factories as of fiscal 2026. Hasbro also indicates that Chinese manufacturers are integral to its production network, identifying several factories in China involved in its operations.

Engin Eroglu, a member of the European Parliament, warned that this framework could impact companies operating in China, including foreign firms, potentially putting resources and intellectual property at Beijing’s disposal in the event of a conflict.

“In a conflict scenario, foreign companies in China could either lose everything or be held hostage,” Bucci remarked.

The mobilization system extends deeply into civilian infrastructure—covering sectors like transportation, telecommunications, cyber defense, healthcare, food supply, and energy—which must prepare training teams during peacetime.

Chinese men and women within defined age ranges may also be required to take on national defense duties after mobilization, aside from specific exemptions established in the law. Specialized personnel may be assigned tasks irrespective of these age brackets.

This framework is part of Beijing’s long-term goal to blur the lines between civilian technological progress and military advancement, a strategy known as military-civil fusion. Xi Jinping made military-civil fusion a national objective in 2015, leading to a comprehensive approach to bolstering military capabilities.

Simultaneously, China is tightening restrictions on technological talent exiting the country. New regulations effective from September 15 aim to restrict citizens’ departure concerning violations of export controls that could jeopardize industrial security.

“This could potentially push Congress to limit access for certain American defense or tech firms in China, or at the very least enforce stricter regulations,” Zhang suggested. “It seems illogical for American firms to aid in building capabilities that could be used against them in the future. There’s growing concern that U.S.-developed AI technology may unintentionally enhance China’s military strength, which could soon extend to other tech industries.”