In the first quarter of the year, China’s economy expanded by 4.5 percent, exceeding economists’ growth expectations of around 4 percent. The first quarter performance is a step toward reaching China’s 2023 growth target of 5 percent and is indicative of a return from its COVID-stunted economy. However, concerns continue to linger amid declining manufacturing and questions surrounding the durability of the consumption rebound. Down the line, China’s economy will continue to face productivity...
China Market Intelligence
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April 26th, 2023
On March 31, China’s Cybersecurity Review Office announced a cybersecurity review (CSR) investigation into US chipmaker Micron, citing supply chain security and cybersecurity risks. This investigation has spurred questions and concerns about the CSR process and whether it will create new compliance difficulties for US companies moving forward.
April 26th, 2023
The Uyghur Forced Labor Prevention Act (UFLPA) has been a game changer for forced labor import bans. Its broad scope, covering anything made “in whole or in part” with input from Xinjiang or entities blacklisted on the UFLPA entity list, has forced companies to rethink supply chain traceability in China and the region. As US Customs and Border Protection (CBP) detentions under the law cross the $1 billion threshold, the agency is performing a tough balancing act between trying to limit...
April 26th, 2023
Since reform and opening began nearly 50 years ago, China’s private sector has played an increasingly important role in the economy, accounting for 60 percent of GDP, 70 percent of innovative capacity, 80 percent of employment, and 90 percent of new jobs. The private sector’s importance led economic and political planners to hold to a “market-led, government-guided” model, which maintains that enterprises operate on market principles but are also subject to government mandates for industry...
March 30th, 2023
The chair of the newly established select committee has a background in defense policy while the ranking member does not, but both are emphasizing similar priorities for the committee.
Individual members have begun suggesting new policies, but the committee—which lacks legislation power—has not officially endorsed any proposals yet.
March 30th, 2023
At the National People’s Congress, China announced major financial restructuring, with the role of the party becoming greater.
The changes are intended to improve China’s financial stability and mitigate financial risks.
March 20th, 2023
The bodies overseeing financial, social, science and technology, and Hong Kong and Macao work have shifted to direct party control.
March 16th, 2023
On March 7, during the annual Two Sessions conferences, the Chinese government released its budget report, entitled Report on the Execution of the Central and Local Budgets for 2022 and on the Draft Central and Local Budgets for 2023. The budget’s proposed expenditures are generally conservative, as the government’s ability to raise revenues in 2022 was constrained by land sale restrictions, an important source of government revenues, and the large tax refunds issued to counteract the...
March 16th, 2023
Over the past five years, the short-form video-sharing app TikTok has risen in popularity, garnering scrutiny from the US government along the way. In October of last year, Chair of the House Select Committee on the CCP, Mike Gallagher (R-WI), and Senator Marco Rubio (R-FL) penned an op-ed outlining concerns that the app, by way of its Chinese parent company Bytedance, would be subject to hypothetical CCP orders to 1) hand over US citizens’ sensitive personal information and 2) alter its...
March 16th, 2023
In recent months, China and Hong Kong have strengthened financial ties in the Greater Bay Area (GBA), a region the Chinese government has been nurturing in its economic planning for many years. The GBA includes the municipalities of Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen, and Zhaoqing, as well as the special administrative regions of Macao and Hong Kong. In 2022, the region’s GDP was approximately RMB 13 trillion, nearly the same size as Canada’s GDP....
