China Market Intelligence

The Uyghur Forced Labor Prevention Act (UFLPA) has been a game changer for forced labor import bans. Its broad scope, covering anything made “in whole or in part” with input from Xinjiang or entities blacklisted on the UFLPA entity list, has forced companies to rethink supply chain traceability in China and the region.

Since reform and opening began nearly 50 years ago, China’s private sector has played an increasingly important role in the economy, accounting for 60 percent of GDP, 70 percent of innovative capacity, 80 percent of employment, and 90 percent of new jobs.

The House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party (CCP) plans to establish itself as a major influencer in debates on US-China relations on Capitol Hill. The committee has no legislative authority, meaning it will have to rely on other standing committees of jurisdiction to actually move bills.

At the National People’s Congress (NPC) meetings in early March, China unveiled a flurry of reforms to its financial system intended to increase financial stability amid growing debt risks. According to a report from National Institution for Finance and Development, China’s debt-to-GDP ratio rose to 273.2 in 2022, rising nearly 10 points from the previous year.

On March 16, the Central Committee of the Chinese Communist Party (CCP) and the State Council issued the Party and State Institutional Reform Plan. The plan rehashes the government restructuring announced earlier during China’s legislative meetings and creates five new party bodies to more directly oversee government work.

On March 7, during the annual Two Sessions conferences, the Chinese government released its budget report, entitled Report on the Execution of the Central and Local Budgets for 2022 and on the Draft Central and Local Budgets for 2023.

Over the past five years, the short-form video-sharing app TikTok has risen in popularity, garnering scrutiny from the US government along the way.

In recent months, China and Hong Kong have strengthened financial ties in the Greater Bay Area (GBA), a region the Chinese government has been nurturing in its economic planning for many years. The GBA includes the municipalities of Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen, and Zhaoqing, as well as the special administrative regions of Macao and Hong Kong.

On March 13, the final day of the National People’s Congress (NPC) meetings, the legislative body officially approved China’s senior State Council leadership. There were not many surprises since many of the government personnel shifts were anticipated (or already announced) following the 20th Party Congress when senior officials took new positions in the Chinese Communist Party.

On March 7, China’s State Council submitted a government restructuring plan to the National People’s Congress (NPC). Key elements of the plan include restructuring the Ministry of Science and Technology (MOST), creating a new data bureau, and creating a new administration overseeing the financial sector.