China Market Intelligence

January 11th, 2018
By USCBC Staff

China has further tightened control on internet services by blocking internet access for some unregistered customers, according to US-China Business Council (USCBC) conversations with China internet service providers and member companies. This development could affect some company operations in China as well as information sharing between offices, but steps can be taken to restore service.

Concerns arose last summer about restrictions on internet access and VPN...

January 11th, 2018
By Anna Ashton

After almost a decade of exponential growth in Chinese investment in the United States, Chinese mergers and acquisitions of US companies fell a precipitous 79 percent last year, from $62.7 billion in 2016 to $13.6 billion in 2017. The drop is partly a function of tightened Chinese capital controls, but heightened US regulatory scrutiny is also at play.

While official data for 2017 will not be available until 2019, data from previous years indicates China has had...

January 11th, 2018
By Jake Laband

China’s senior Communist Party leaders will start the year approving a slate of nominations for high-level government positions, including the head of the legislature, the vice president and vice premiers. The candidates will then be confirmed in March, when China’s top legislative body meets.

The government-leader slate will be vetted at next week's second plenum of the 19th Party Congress, with the appointments taking place at the National People’s Congress (NPC...

January 11th, 2018
By Owen Haacke

Local industrial air and water pollution tax rates, set by local governments after the January 1 implementation of the Environmental Tax Law, will help determine manufacturing companies’ environmental compliance costs.

The State Council on December 31 issued the Implementation Regulations of the Environment Protection Tax Law of China, which specify taxation levels, exemptions, and management of collection. The regulations also make clear the taxation scope of...

January 3rd, 2018
By USCBC Staff

The US-China Business Council (USCBC)’s updated report on compliance best practices finds that the anti-corruption campaign has resulted in an improved business environments for American companies operating in China. The full report can be found here.

Highlights:

Although companies surveyed in the USCBC 2013 Compliance Report said China’s anti-corruption campaign was unlikely to have a significant impact on operations, US companies now note that...

January 3rd, 2018
By Meg Kelly

A year after the US-China Business Council (USCBC) analyzed potential options to address trade and economic concerns about China, the Trump administration’s approach is still under development, but some departures from previous administrations are already evident.

Ongoing issues in the relationship

The trade balance has been a major focus of the US-China relationship in the past year, and a driving force behind the Trump administration’s trade...

January 3rd, 2018
By David Solomon

Intensifying nationwide environmental enforcement is affecting foreign company supply chain management, compliance and reporting procedures in China, according to USCBC sources. New rounds of environmental inspections have already led to increased supply chain disruption and, in some cases, factory shutdowns for months. This nationwide trend has important implications for companies as they approach environmental compliance.

Beginning in 2015 with the passage of the...

December 20th, 2017
By USCBC Staff

China’s top leadership closed its annual economic planning meeting with a number of signals as to how the China business environment may evolve in the next twelve months, but maintained the general call to expand market access for foreign companies while also strengthening the state sector.

Xinhua, China’s official state news agency, released a statement today on the outcomes of China’s Central Economic Work Conference (CEWC), which was convened this week by the Central...

December 13th, 2017
By Anna Ashton

Import tariff reductions that went into effect in China earlier this month on a wide range of goods will have a positive effect on sales for several US-China Business Council (USCBC) member companies. China’s Ministry of Finance implemented tariff reductions for 187 consumer products, effective December 1. Products for which import tariffs have been cut include infant formula and diapers, a wide range of medicines, certain alcoholic beverages and food, and some cosmetics and...

December 13th, 2017
By He Jiao

Following its November 8 inaugural meeting, China’s newly-established Financial Stability and Development Committee (FSDC) released details of its role in a range of issues related to financial affairs The committee could help coordinate China’s multiple financial regulators and reduce interagency conflicts, but skepticism remains about FSDC’s ability to mend the fragmented supervisory structure of China’s financial system.

President Xi Jinping ordered the...

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