China Market Intelligence

November 24th, 2015

Chinese commitments to boost transparency of technology and security policies and improve trade secret protection were key at this year’s US-China Joint Commission on Commerce and Trade (JCCT), which ended Monday in Guangzhou. The JCCT—an annual bilateral dialogue about commercial cooperation and concerns—saw some progress on outcomes from Chinese President Xi Jinping’s September state visit, but limited progress on USCBC priority issues.

This was the second year...

November 23rd, 2015

China appears to have made new commitments on the protection of trade secrets as part of bilateral meetings with the United States today, although full results of this year’s meeting of the US-China Joint Commission on Commerce and Trade (JCCT) are just beginning to emerge.

Initial media reports indicate that substantive results may be announced on several issues, including intellectual property rights, competition policy, and technology and security issues....

November 10th, 2015
Pianpian Huang and Jake Parker

China has announced further details about plans to gradually decrease government control over investment decisions. The Opinions on Implementing the Market Access Negative List System, a document released by the State Council on October 19, 2015, offer a firmer roadmap towards adopting a “negative list” approach in China, which would allow foreign investment in all fields except those expressly restricted. With pilot implementation in some locations slated to begin as early as...

November 10th, 2015
Yan Yu and Nick Marro

This issue marks the first of a regular series of US-China Business Council (USCBC) reports analyzing key discussions and decisions of China’s bimonthly National People’s Congress (NPC) Standing Committee Meetings, the most recent of which concluded on November 4. According to press reports, during this round of meetings central legislators approved decisions covering reforms in the pharmaceutical, agriculture, and other consumer-facing industries.

Reforms in pharmaceutical...
November 10th, 2015
Yue Sheng and Zoe Sophos

Government-mandated price controls, once a hallmark of China’s socialist economy, may soon be abolished for all but a small number of products and services. On October 12, China’s State Council issued a plan to remove government control of prices of some goods and services in competitive industries by 2017 and create a market-oriented pricing system by 2020. A key step in China’s overall economic reform, the plan will allow the market to more closely reflect supply and demand and...

November 10th, 2015
Owen Haacke and Yiling Yin

For many global companies, having a China base means more than just paving the way for greater access to the China market. Over 2,000 regional headquarters (RHQs), research centers, and other agencies have been established in China by multinational corporations (MNCs). The US-China Business Council (USCBC) frequently fields questions from member companies about the cost-benefit analysis for setting up a China RHQ to serve the company’s Asia-Pacific operations. Though Shanghai and...

October 29th, 2015

At the close of the four-day high-level meeting in Beijing this week, Chinese Communist Party (CCP) leaders reaffirmed their prior commitments to double 2010 GDP and individual incomes by 2020, adopt a “negative list” approach to approving new investment by 2018, and continue to raise domestic consumption’s share of economic growth. The Fifth Plenum of the 18th CCP Congress and discussion of China’s 13th Five Year Plan (FYP) come amidst concerns regarding China’s ability to push...

October 28th, 2015
Owen Haacke

Despite new obstacles, growth in China remains robust, and US companies are dedicated to the China market—that was a clear message from the US-China Business Council (USCBC) 2015 China Operations Conference, held in Shanghai on October 22. With new challenges such as tightened profit margins, higher labor and management costs, and limited market access in some areas, companies are adapting their strategies to capture China’s continuing growth, according to experts that shared their...

October 28th, 2015
Ryan Ong and Stephanie Henry

Preparations for the November 21-23 US-China Joint Commission on Commerce and Trade (JCCT) have kicked into high gear in recent weeks with both an active calendar of working group programs and robust planning for the plenary session in Guangzhou. The bilateral JCCT will be looking to build on outcomes from Chinese President Xi Jinping’s September 2015 state visit to the United States and the June Strategic & Economic Dialogue.

This year’s JCCT is the first that...

October 28th, 2015
Zoe Sophos

With the launch of the China International Payment System (CIPS) earlier this month, China took its latest leap towards making the Renminbi (RMB) an international currency. The new system makes it easier for foreign companies to clear cross-border RMB transactions, and brings China’s payment processing framework in line with the rest of the world’s exchange regime.

CIPS is designed to make RMB transactions smoother and faster by adopting the same secure messaging...