On September 26, the US Department of Commerce’s Bureau of Industry and Security (BIS) issued a proposed rule on securing the information and communications technology and services (ICTS) supply chain for connected vehicles (CVs). The proposed rule would prohibit several types of ICTS transactions, most notably the import of Chinese CVs and certain hardware absent an authorization from BIS. It is the first in what is expected to be a series of BIS rules prohibiting companies in the United...
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Data released by the National Bureau of Statistics on October 18 reveal that China’s GDP grew by 4.6 percent in the third quarter of the year, the slowest pace since early 2023. While the figure beat expectations, the slowing trajectory suggests that the unprecedented growth China has enjoyed over the past few decades will be a thing of the past unless it implements more aggressive countercyclical measures.
On September 30, China’s State Council released its finalized Network Data Security Management Regulations, set to take effect on January 1, 2025. The regulations are now the highest-level administrative guidance for implementing the Cybersecurity Law, the Data Security Law, and the Personal Information Protection Law. While rules on cross-border data transfer went largely unchanged, there were notable adjustments to the definition of important data, compliance obligations for large...
Today, USCBC submitted comments to the Bureau of Industry Security (BIS) at the Department of Commerce regarding proposed rules on military, military support, intelligence, and foreign security end users. USCBC is supportive of efforts to protect national security, but the Council is concerned that these rules will harm trade in many non-sensitive sectors and potentially result in commercial decoupling with China.
At a tech conference last month, Minister of Industry and Information Technology (MIIT) Jin Zhuanglong praised the advancement of China’s domestically-developed software, AI, and associated technologies. He promised to expand government support for the ecosystem as part of China’s xinchuang—or innovation technology application innovation (ITAI)—initiative. Xinchuang refers to a loosely coordinated set of programs aimed at replacing foreign-made IT products with domestic alternatives by 2027...
US and Chinese officials convened in early September in Tianjin, China for the second US-China Commercial Issues Working Group (CIWG), marking another step in the iterative process of addressing commercial concerns between the two countries. Under Secretary of Commerce for International Trade Marisa Lago led the US delegation to China through a series of meetings focused on policy and regulatory issues affecting USCBC member companies that conduct business with China.
As tariffs and other trade restrictions between the United States and China continue to rise, US policymakers are flagging a related trend: an increased manufacturing presence of Chinese firms in third countries—particularly in Mexico and Vietnam. Some accuse these firms of deliberate “country hopping” to skirt US tariffs on imports from China and enter the US market at lower tariff rates. With new Section 301 tariffs implemented last month and both presidential tickets doubling down on...
China’s growth has continued to stagnate this year as it grapples with a protracted real estate downturn, local government debt, and record youth unemployment, which have all resulted in an acute crisis of confidence. Chinese consumers, who were already inclined to save and now face poor job prospects and falling wages, have become even more cautious with spending. In an effort to offset the property slump, Beijing has expanded investments in manufacturing and increased exports. The...
Accessing China’s vast public procurement market continues to be difficult for US companies. Procurement issues appeared in this year’s list of top 10 challenges for USCBC members for only the third time in our survey’s history. While few companies report new policies preventing access, the rise of informal barriers combined with the effects of geopolitical tensions with the United States and China’s broader economic slowdown appear to be inhibiting the ability of American companies to gain...
Six months after China’s internet regulator published new rules on data flows, cross-border data transfer (CBDT) remains a top challenge for US companies operating in the country. Sector-specific issues and the introduction of free-trade zone CBDT rules are presenting new challenges to companies even as national-level compliance burdens have eased. As a result, the relaxation has been uneven and can be better described as an evolution of compliance challenges rather than universal relief....