China Market Intelligence

February 18th, 2015
Jake Laband

China’s Draft Foreign Investment Law, which will restructure the foreign investment legal regime, leaves significant room for protectionism, according to US-China Business Council (USCBC) comments recently submitted to the Ministry of Commerce (MOFCOM). The proposed law combines the three current laws governing foreign investment—the Wholly Foreign-Owned Enterprise Law, the Sino-Foreign Equity Joint Venture Law, and the Sino-Foreign Contractual Joint Venture Law—while removing language on...

February 18th, 2015
Ryan Ong

Enforcement actions are not enough for companies to protect their intellectual property (IP) in China, according to a new best practices sheet released by the US-China Business Council (USCBC) late last month. Instead, companies seeking to use and protect their patents, trademarks, copyrights, and trade secrets in China must develop an integrated IP protection strategy. Such a strategy has to reflect the nature and extent of the IP problems that the company faces, align with overall...

February 18th, 2015
Owen Haacke

New openings for foreign investment and preferential taxes for goods sold through pilot e-commerce channels have raised questions about how companies can integrate e-commerce into their business plans in China. A recent announcement by China’s IT regulator allowing 100 percent ownership of e-commerce platforms in the Shanghai Free Trade Zone (FTZ) is a step toward further liberalizing online selling, but there remain a number of obstacles and areas of regulatory ambiguity for businesses...

February 18th, 2015
Nick Marro and Yan Yu

Last year, China’s 12th National People’s Congress (NPC) laid out a legislative agenda to address some of the most pressing issues facing the nation. And indeed, the topics discussed in 2014's NPC meeting did see movement. Importantly, policymakers pushed through the publication of the 2014-2020 energy development strategy which seeks to diversify China’s energy mix, enacted revisions to the Environmental Protection Law to pressure on heavy polluters, and made commitments following APEC to...

February 18th, 2015
Matthew Margulies

China’s State Council has called for an important adjustment of the approval process for foreign and domestic investment projects in a December work plan. The work plan, which the US-China Business Council (USCBC) called “significant” in its latest Reform Scorecard report, is a major step in streamlining China’s many administrative applications and approvals.

The plan calls for eliminating pre-approval policies that interfere with corporate operational autonomy, and for allowing...

February 5th, 2015
Nick Marro, Yan Yu, and Hengrui Liu

At the opening of Shanghai’s legislative session on September 25, Shanghai Mayor Yang Xiong announced that the city would no longer post a GDP growth target for 2015.  This decision came shortly before 26 other provinces announced that they would lower their provincial GDP targets, as China settles into what policymakers have termed as “the new normal.”

The US-China Business Council (USCBC) has compiled data from publically available sources into an infographic showcasing provincial...

February 4th, 2015
Matthew Margulies

The US-China Business Council’s (USCBC) latest assessment of China’s economic reform efforts shows some acceleration in reform measures, but continuing limited impact on the top concerns of American companies. Recent months have seen mixed signals: positive steps in several areas offset by new restraints on foreign company market access. This has prompted questions on the ultimate reform outcome, resulting in no overall improvement in this assessment from June and October 2014.

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February 4th, 2015
Dan Markus and Miaozhu Yuan

Beset by rising local debt—RMB 17.9 trillion ($2.9 trillion) as of June—Chinese policymakers have been struggling to rein in its growth. In August, they passed a budget law allowing local governments for the first time to issue debt in domestic bond markets. In December, China’s Ministry of Finance (MOF) and the National Development and Reform Commission (NDRC) proposed strategies for managing local government debt with something popular in US development circles—public private partnerships...

February 4th, 2015
Nick Marro

As China transitions to a service-oriented, high-value manufacturing economy, policymakers have taken measures to promote domestic research and development (R&D). While such pro-innovation policies could create new opportunities for foreign companies in China, some of these policies have raised strategic and operational concerns. One serious issue that has gained the attention of companies with large R&D operations is an effort to increase compensation for Chinese inventors, as seen...

February 4th, 2015
Owen Haacke

China’s policymakers are starting to reveal details about the direction of the country’s next Five-Year Plan (FYP), the central government blueprint for China’s long-term social and economic policies. While the 13th FYP (2016-2020) is still in the early planning stage, according to government sources, it will focus on boosting economic development and promoting innovation during a period of slowing economic growth. Though little is known about the new plan, foreign companies in China are...

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