China Market Intelligence

January 15th, 2020


The US-China Business Council congratulates US and Chinese negotiators for the signing of a Phase One trade agreement on January 15. The full text is available here.

We are hopeful that Phase One will serve as a stable foundation for building a stronger, more prosperous US-China relationship. Our initial analysis of the most impactful commitments for our member companies is below.

USCBC is also soliciting comments from members on what you would like to see...

January 8th, 2020
By Jake Parker
China’s 2020 GDP will grow no slower than 6 percent to double China’s per-capita GDP from 2010 to 2020. Likely economic policy actions include tax cuts, reserve ratio requirement cuts, moderate investment increases, and fee reductions. Any potential US-China flare up will not affect 2020 growth numbers because of the Chinese economy’s diminishing reliance on exports. 

Humming along between 6 to 6.5 percent, China’s 2019 gross domestic product (GDP) growth numbers remain a driver of global...

January 8th, 2020
By Yan Yu and Angela Deng
The last session of the National People’s Congress Standing Committee in 2019 passed a revised Securities Law and introduced drafts for a unified Civil Code and an overarching Export Control Law. Both of the draft laws, if passed during the “Two Sessions” in early March, would have implications for US businesses in the China market.

At the National People’s Congress (NPC) Standing Committee meeting, which concluded on December 28, China moved forward with several pieces of legislation that...

January 8th, 2020
By USCBC Staff
The plan seeks to smooth over longtime burdens for business, including visas, office relocation, and procurement. It also confirms that Shanghai will build upon its local social credit pilot programs.

While the official “3.0 Shanghai Business Environment Reform” plan does not yet have a set release date, on January 2, the Shanghai municipal government shared the plan’s intended content, and media outlets have since released their own reports on what it might entail. In a recent roundtable...

January 5th, 2020

On January 2, China’s State Administration for Market Regulation (SAMR) released a long-awaited draft revision of the Anti-Monopoly Law (AML), open for public comment until January 31, 2020. This is the first official draft that China has released for public consultation since the AML first came into effect on August 1, 2008, though it was mentioned in the 2018 legislative plan of the 13th National People’s Congress Standing Committee.

USCBC is considering submitting comments on...

January 2nd, 2020
By USCBC Staff

The final implementing regulations were released on December 31 and came into effect on January 1, marking the last major step of implementing China’s Foreign Investment Law (FIL) passed in March last year. Supporting documents to the implementing regulations also came into effect on January 1. 

The final regulations reflect several suggestions USCBC advocated for in our comment letter on the previous draft. It features strengthened commitments to provide equal treatment to foreign...

January 2nd, 2020
By USCBC Staff

On December 28, the National People’s Congress released its draft Export Control Law, open for public comment until January 26. The draft law updates the 2017 version released by the Ministry of Commerce and aims to establish a unified regulatory system for export controls.
USCBC is considering submitting comments on behalf of members should we receive substantial feedback. Interested members should send feedback to Yan Yu by January 13.

Key points:

December 22nd, 2019
By Yan Yu, Angela Deng, and Banny Wang
Areas worth watching in 2020 include the implementation of commitments to national treatment included in the Foreign Investment Law and China’s efforts towards improving the environment for protecting and enforcing IP rights. Concerns regarding China’s corporate social credit system and utilization of industrial policy for achieving economic goals remain.

In the year 2020, it will be important to monitor implementation of key reform efforts the Chinese government has pledged to carry out...

December 11th, 2019
By Yue Chen and Hanchen Zheng
While the new blueprint serves as a supplement to MIC 2025, the target goals are different from those of the original policy. Unlike MIC 2025, the new policy document calls for more market-oriented measures to upgrade China’s manufacturing industry, a potentially positive development for foreign companies.

On November 15, China’s National Development and Reform Commission (NDRC) released the Guiding Opinion to Deeply Integrate Advanced Manufacturing and Modern Service Industries, outlining a...

December 11th, 2019
By Antonio Douglas
Several measures that implement concepts present in China’s Cybersecurity Law were released over the last year. CII, important data, and cross-border data flow concerns remain unresolved.  Several regulations remain in draft form with no discernible timeline for further comment periods or finalized releases.

This past year finally saw more specific guidance on cybersecurity reviews, critical information infrastructure (CII), cross-border data transfers, and personal information, though many...