Research & Analysis

Poorly executed investigations in China fail to contain potential compliance, regulatory and business continuity problems, and can often increase the risk of scrutiny from government investigators, disrupt supply or distribution chains, and disgruntle employees.

China’s energy planners seek to increase production, distribution, and consumption of renewable energy as a means to diversify energy supply. However, as China attempts to transition from coal to other energy sources, it struggles to utilize existing renewable capacity. This inefficiency, caused by overcapacity and grid limitations, has hindered the country’s ability to achieve renewable sector development goals.

A new government system that evaluates and tracks “untrustworthy” individuals and companies could limit eligibility for financing, employment, and Party membership, as well restrict real estate transactions and travel. The Chinese government intends to fully implement this nationwide social credit system by 2018.

Companies operating in some of China’s major cities are facing significant cost increases following a change to employment social security fund payment calculations. Although announced by the central government, provincial governments are implementing the new calculation in different ways—if at all—leaving all companies unsure of how to comply.

The newly released Catalog of Encouraged Imported Technology and Products identifies key technologies and products that Chinese companies are encouraged to buy from abroad, potentially positive news for US companies looking to expand sales in China.

Air pollution continues to pose a major health threat in China. China’s recent Air Pollution Prevention and Control Law and Atmospheric Pollution Prevention Action Plan demonstrate the government’s resolve to significantly improve air quality. With appropriate planning, this large-scale deployment of clean air technologies could reduce China’s greenhouse gas emissions, helping achieve the country’s longer-term climate policy goals.