China Market Intelligence

April 16th, 2014
Jake Parker

New regulations limiting the proportion of dispatch—or temporary—workers in China went into effect on March 1, constraining hiring choices and requiring labor force restructuring for many companies. A follow-up to the 2013 Labor Contract Law Amendment, the Provisional Regulations on Labor Dispatch and its associated implementing regulations limit the proportion of dispatch workers to 10 percent of a company’s overall workforce in China. Although employers can apply for a two-year grace...

April 16th, 2014
Jake Laband

Chinese regulators have recently released two measures meant to make merger and acquisition (M&A) review processes faster and more transparent. The Ministry of Commerce (MOFCOM) announced measures to simplify M&A reporting processes in February that may speed up international transaction reviews. Another recently released rule—set to take effect May 1—aims at putting pressure on companies that do not properly report M&A transactions. These two initiatives could be welcome...

April 16th, 2014
Ryan Ong

The State Council recently released the official 2014 priorities for a key interagency group on intellectual property rights (IPR), the State Council Leading Group on Combating IPR Infringement and Sales of Counterfeit Goods.  Many of the key priorities for 2014 extend or build on goals laid out in previous plans, with a special emphasis on counterfeit production and sales.

The plan focuses on efforts to tackle infringement of IP, cutting across patents, trademarks, copyrights, and...

April 16th, 2014
Owen Haacke

China’s insurance industry regulator will ease restrictions on the number of companies insurers can invest in and expand financing channels for mergers and acquisitions—moves that may allow foreign insurance companies operating in China to expand their business footprint in the market.

Changes made by the China Insurance Regulatory Commission (CIRC) are part of the central government’s efforts to let the market play a greater role in China’s economy by encouraging industry...

April 16th, 2014
Nick Marro

In 2014, China’s agencies in charge of human resources (HR) are focused on implementing reform to social insurance and income distribution systems, talent development programs, labor rights, and rising labor costs, the last of which is the number one challenge to doing business in China, according to the US-China Business Council (USCBC) 2013 China Business Environment Survey. According to various agencies’ 2014 work plans (links to which are provided in the attached PDF), policy initiatives...

April 16th, 2014
Wenham Shen

Starting April 1, seven Chinese cities and provinces raised their monthly minimum wages by an average of 12.5 percent, according to China News. These cities and provinces include Beijing, Shanghai, Tianjin, Chongqing, Shaanxi, Shenzhen, and Shandong. Shanghai tops the list with a new monthly minimum wage of RMB 1,820 ($292), followed by Shenzhen at RMB 1808 ($290).

These changes are the latest in a series of multi-year annual minimum wage increases. According to China’s Ministry of...

April 9th, 2014
Ryan Ong

In recent weeks, several leadership transitions have taken place at Chinese government agencies that work closely with foreign companies, including the National Development and Reform Commission, Ministry of Foreign Affairs, State Intellectual Property Office, and the State-Owned Assets Supervision and Administration Commission. These transitions also involve important changes to work portfolios that touch on issues affecting foreign companies doing business in China.

National...

April 7th, 2014
Tim Donovan

With economic growth slowing sharply over the last three months, China’s State Council announced a spending package last Wednesday consisting of tax breaks for small businesses, social housing projects, and the acceleration of railway construction across central and western China. No overall cost was attached to the announced package. However, its limited scope signals that policymakers are avoiding the type of massive, investment-led push used by officials in the past in favor of a targeted...

April 2nd, 2014
Jake Laband

China’s long-awaited urbanization plan indicates that the country’s leaders will focus on increasing access to social services, allowing greater labor mobility through residency permit reforms, and increasing the role of the market in real estate pricing. These policies could provide new opportunities to foreign companies operating in China.

The plan, released on March 16, will begin to shift urbanization efforts away from traditional investment-heavy priorities like real estate...

April 2nd, 2014
Erin Ennis

As the United States and China restart negotiations on a bilateral investment treaty (BIT), the US-China Business Council (USCBC) has put together a primer explaining a key component of any BIT agreement— the “negative list.” In the context of a bilateral investment treaty, such a list clearly lays out sectors that would be closed to foreign investment in the United States, even as other sectors are opened. All sectors not included on the list would be open to foreign investment—with some...

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