In recent years, the United States and the European Union have successively incorporated regulations on source code into international trade agreements, albeit with differences in the exceptions to the principle of prohibiting source code transfer. Presently, China has not articulated a definitive stance on the international regulation of source code. However, due to the absence of domestic legislation, as well as practical barriers such as network security supervision and policies governing software development utilization, China faces challenges in effectively regulating source code. China should steadfastly uphold the principles of controllable security and open innovation. To this end, it should adopt a “principle + exception” framework. At the domestic level, China should enhance its domestic legislative framework, establish a comprehensive classification and grading system for source code disclosure, and implement a robust regulatory governance structure. Moreover, it should implement preferential policies that incentivize voluntary source code disclosure by enterprises. At the international level, China should proactively engage in international negotiations concerning source code regulation, align its position with that of the United States and the European Union, and strengthen collaboration with countries along the Belt and Road initiative. By doing so, China can explore a distinctive regulatory path for source code while augmenting its international discourse power and influence in the realm of source code regulation.