China Market Intelligence

May 13th, 2015
USCBC Staff

The US-China Business Council (USCBC) last week submitted recommendations to Treasury Secretary Jack Lew for priority issues and outcomes to be included in next month’s US-China Strategic and Economic Dialogue (S&ED). Based on the USCBC Board of Directors’ 2015 Statement of Priorities in the US-China Commercial Relationship, these recommendations cover a range of issues, including reducing investment barriers, engaging on cybersecurity, improving rulemaking transparency, and adopting non...

May 13th, 2015
Owen Haacke

Companies are thinking through their advertising strategies—from whom they choose to appear in their ads, to how they phrase disclaimers, to where they advertise—in preparation for a revised law that will come into effect this fall. The amendments to China’s two-decades-old Advertising Law will require companies to reevaluate their advertising strategies to ensure compliance with the law, while maintaining consistent and strong brand messaging.

Key revisions to the law

The amendments...

May 13th, 2015
Ryan Ong

The flurry of recent intellectual property (IP) regulations released by Chinese agencies touches on a number of issues of concern to foreign companies in China, including inventor compensation, patent enforcement, use of patents in standard-setting, and linkages between IP and competition. While the regulations show some progress in these areas, they also reflect the significant gaps that remain between the Chinese regulatory process and foreign company recommendations. The recent activity...

May 13th, 2015
Zoe Sophos

After decades of deliberation, China instituted a deposit insurance scheme on May 1 that protects RMB and foreign currency deposits of up to RMB 500,000 ($80,500) from bank defaults. This new safety net eliminates the central government’s de facto backing of China’s banking system and shifts liability for lending decisions to the banks themselves. Along with required reserve ratio cuts, loosened monetary policy, and restructuring of China’s policy banks, the scheme marks a growing emphasis...

May 13th, 2015
USCBC Staff

Senior Chinese leaders are confident that they have the policy tools to maintain economic growth without resorting to stimulus spending seen in past years. That was one key finding from a visit to Beijing May 4-5 by a delegation of the US-China Business Council (USCBC) Board of Directors.

The delegation met with Vice Premier Wang Yang, Commerce Minister Gao Hucheng, and other officials to discuss China’s economic slowdown, prospects for economic reforms, and specific commercial issues...

May 11th, 2015
Ryan Ong

Despite progress on competition concerns at the December 2014 Joint Commission on Commerce and Trade (JCCT) meeting, competition enforcement under the Antimonopoly Law (AML) remains a high-profile concern for many US companies in China. Data from the US-China Business Council’s (USCBC) 2014 member company survey indicated that 86 percent of firms surveyed were concerned on some level about competition enforcement activities in China. A new report released today  by USCBC highlights evolving...

April 29th, 2015
Lingling Jiang and Nick Marro

For millennia the Silk Road served as an important network of trade and culture between East and West, facilitating the peaceful movement of people, wealth, and ideas between East Asia and Europe during its zenith in the 12th century. A newly issued action plan for the "One Belt, One Road" initiative (OBOR) has been billed by the Chinese government as an effort to revive the economic integration that nations along the historic Silk Road once enjoyed.

The plan...

April 29th, 2015
Dan Markus

New provisions for continuous fines, detention for polluters, and public interest lawsuits give China’s revised Environmental Protection Law (EPL) new powers to fight the war on pollution. But whether or not the EPL’s added clout results in a cleaner environment depends on enforcement capacity—as well as implementation. The 1989 EPL was revised to mete out more serious punishments to polluters, reflecting growing concerns within China’s leadership and at the local level about...

April 29th, 2015
USCBC Staff

Companies can expect some openings in China’s newly issued list of industries off-limits to foreign investment in the recently unified free trade zones (FTZs), though many investment restrictions important to industry groups remain unchanged. The State Council’s updated free trade zone negative list is to be uniformly adopted across China’s four free trade zones in Shanghai, Fujian, Guangdong, and Tianjin, effective May 20, 2015. The updated “negative list” (or list of sectors...

April 15th, 2015
Secretary of Commerce Penny Pritzker on Tuesday, April 14 in Beijing called for expanded US-China business engagement and the need to address cybersecurity-related concerns.   Her remarks were made during a clean energy business development trade mission that she is leading this week in conjunction with the Department of Energy and leading American companies. USCBC co-hosted events in Beijing and Shanghai for the mission.   Key passages from Secretary Pritzker’s remarks:   America supports a...

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