China Market Intelligence

July 22nd, 2015
Dan Markus

Instill fear, strengthen the regulatory framework, and change the political culture—these are the three stages to fighting official corruption, according to Wang Qishan, secretary of the Central Commission for Discipline Inspection, China’s corruption watchdog. After a three-year crackdown and widespread investigations and prosecutions, the Chinese government has in recent months tightened the regulatory screws to deter official corruption. New policies that clearly define government...

July 22nd, 2015
Lingling Jiang

Concerns about China’s environmental degradation continue to grow, prompting both government and industry to reduce environmental pollution. Six months after the enactment of China’s new Environmental Protection Law (EPL), the Ministry of Environmental Protection (MEP) has shown the new teeth of the EPL by leveling hefty fines on a number of major polluters. Other environmental initiatives—such as the carbon trading pilot programs—have seen slower progress, despite the Chinese government’s...

July 22nd, 2015
Owen Haacke

Fewer restrictions on drug pricing and greater access for foreign companies may make for a healthier China, and bring both potential growth and growing pains to the pharmaceutical industry—a sector analysts expect to be worth upwards of $300 billion by 2020. Recently released drug registration regulations and opinions calling for the removal of price caps signal some progress toward a more market-efficient approval and pricing system, currently largely controlled by the state. Still to come...

July 8th, 2015
Jiang Lingling

New rules to promote local innovation in Shanghai, which has nearly 15 percent of China’s total foreign investment, may provide new tools for US companies to attract foreign and local talent. The municipality’s new 22 Measures, released on May 27, include new guidelines to ease the residency permit application process for key talent and increase the maximum work period for qualified technical experts. New measures to streamline the hukou process should also make it easier for companies to...

July 8th, 2015
Dan Markus

“Made in China 2025” got a boost on June 24 when the State Council formed a high-level interagency task force to direct the initiative, entitled the Leading Group for Creating a Strong Manufacturing Country. The new group will be responsible for reviewing and implementing the Made in China 2025 plan, a ten-year blueprint to increase China’s manufacturing competitiveness. The group is also charged with coordinating policy implementation among government and party decision-making bodies.

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July 8th, 2015
Zhang Lipei and Jake Laband

A lack of recent news about competition-related investigation cases should not be misinterpreted as a lull in enforcement activity related to China’s Antimonopoly Law (AML), a National Development and Reform Commission (NDRC) official stated at a recent USCBC-sponsored event. USCBC’s May 2015 update on competition enforcement had reported a pause by Chinese competition regulators on some controversial AML enforcement practices. Yet, speaking as a part of a dialogue with NDRC’s Bureau of...

July 8th, 2015
Yan Yu and Nick Marro

China’s legislature on July 1 finalized the National Security Law of China, which includes all-encompassing definitions of national security as well as troublesome language to keep critical technology “secure and controllable.” The law was passed almost unanimously on the last day of the National People’s Congress (NPC) Standing Committee’s June 24-July 1 executive session. The vague nature of key definitions of national security—and the continued use of terms such as “secure and...

July 8th, 2015
Ryan Ong

The next few months will be a busy time for issues related to intellectual property (IP), coming on the heels of a flurry of bilateral IP meetings in May and June. At a June 30 briefing in Washington, DC, co-hosted by the US-China Business Council (USCBC), US Patent and Trademark Office (USPTO) Director Michelle Lee discussed the current uptick in engagement between the US and China on IP matters, including high-level meetings with senior Chinese government officials in late May, IP-related...

June 25th, 2015

Executive Summary

The US-China Bilateral Investment Treaty (BIT) and cybersecurity were featured prominently at this year’s Strategic & Economic Dialogue (S&ED); both issues are likely to remain key priorities for discussion during President Xi Jinping’s state visit to Washington, DC in September. Both sides affirmed that a “high standard” BIT is the “top priority” in the bilateral economic relationship. The US and China exchanged their first “negative list” offers shortly before...
June 24th, 2015
Yuan Yining

The spotlight on stronger environmental protection shows little sign of abating in the months since the January 2015 implementation of China’s revised Environmental Protection Law (EPL). Discussions on the 13th Five-Year Plan (FYP) (2016-2020) priorities for environmental protection, the draft Environmental Tax Law, and tougher enforcement measures all aim to increase pressure on polluters. While the increased emphasis on environmental protection may create business opportunities for...

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