China Market Intelligence

November 27th, 2019

On Tuesday, November 26, the Department of Commerce announced it is preparing to solicit public comments on proposed rules to implement the May 15 Executive Order 13873, “Securing the Information and Communications Technology and Services Supply Chain,” (“the EO”). The long-awaited regulations set out a case-by-case process the secretary of commerce will follow to determine whether a particular transaction meets the EO’s requirements and should be prohibited or mitigated.

The deadline...

November 26th, 2019
By Angela Deng
US companies still face unusually high requirements for pursuing cases of IP infringement, lengthy processes to stop the infringing activity, and uneven enforcement. However, there are a number of measures they can take to better protect their IP rights. 

Over the past year, the Chinese government has introduced several legislative changes to improve protection and enforcement of intellectual property (IP) rights. While several looked promising on paper, long-standing structural challenges...

November 26th, 2019
By Chynna Hawes
Over 150 pieces of legislation in the 116th Congress focus on China-related issues. National security interests are bleeding into industry issues from technology to pharmaceuticals and finance. Hardening, bipartisan perspectives on China point to long-term challenges in the bilateral relationship even if a trade deal is reached. 

Getting tough on China seems to be the one issue that both political parties agree on in Washington, DC. The 116th Congress, which began in January, has introduced...

November 26th, 2019
By Pearson Goodman
It encourages requiring Chinese firms listed on US exchanges to fully disclose auditing information. US dependence on Chinese pharmaceutical ingredients is framed as a national security threat. The report’s recommendations on Hong Kong are in-line with legislation that passed last week.

The US-China Economic and Security Review Commission (USCC) recently released its annual report to Congress (executive summary here). Previous reports have typically adopted aggressive recommendations that...

November 25th, 2019
By USCBC Staff

On Sunday, the General Office of the Chinese Communist Party (CCP) and the State Council released guidelines for China to strengthen the protection and enforcement of intellectual property (IP) rights in the next few years. While the timeline of the “phase one” deal is unclear, China’s announcement indicates a top-level consensus within the Chinese government to make further progress on IP, partially for domestic reasons. Given that the guidelines call for a larger role for the National...

November 13th, 2019
By Angela Deng and Jack Kamensky
China has made significant changes to intellectual property and technology transfer policies. The deal is expected to resolve many longstanding agricultural trade barriers, which could increase Chinese purchases if tariffs are removed. Agreements on the financial services and currency portions of the deal have mostly been settled, and China has already announced the types of financial openings that will be included in the deal.

With an agreement “in principle” reached earlier this month,...

November 13th, 2019
By Chynna Hawes
The United States continues to block efforts to reform the Appellate Body, which will cease to function on December 11. A recent ruling in favor of China underscores the United States’ long-term frustration with the WTO and its dispute settlement system.

In less than a month, the World Trade Organization (WTO) dispute settlement mechanism will effectively cease to function, with potentially severe implications for the multilateral trading system. On December 10, the terms of two of the three...

November 13th, 2019
By Pearson Goodman
The draft regulations had positive developments related to IP protection and forced technology transfers. They failed to address the national security review mechanism, a key concern of US businesses. USCBC member companies would like to see further commitments that the standards-setting and government procurement processes are fair and open to foreign firms.

On October 14, the Chinese Ministry of Justice (MOJ) shared with the US-China Business Council (USCBC) an advanced copy of its draft...

November 12th, 2019

Following the release of the draft implementing regulations for the Foreign Investment Law (FIL) by the Ministry of Justice on November 1, the Chinese government has released more documents further clarifying and implementing two components of the FIL. Last Friday, the Ministry of Commerce (MOFCOM) released two draft measures on the information reporting system for the FIL for public comment.

According to the draft measures, MOFCOM will be responsible for coordinating and implementing...

November 5th, 2019
Craig Allen

USCBC member companies,

Recent comments by the Chinese and US governments indicate that both sides are preparing for the announcement of a “phase one” agreement by mid-November.

What’s the big deal?

The outlines of the agreement are clear: the Chinese side will push forward commitments on intellectual property rights (IPR), financial services market access, agricultural purchases, agreement to not manipulate exchange rates, and promises not to engage in forced...