China Market Intelligence

May 18th, 2011
Kyle Sulivan

Companies operating in China can expect power shortages this summer as electricity providers reduce supply to offset financial losses caused by government price caps on electricity. Electricity rationing has already taken effect in nearly two dozen provinces and autonomous regions, and further control measures are expected as electricity demand peaks in the coming months. The shortages come amid PRC regulators' growing push to increase energy efficiency in industry (see Box). Regulators may...

May 18th, 2011
Christine Kahler

Companies in China are increasingly concerned about the risks associated with raising product prices, as the PRC government has recently taken measures against price hikes in several areas to rein in inflation. The PRC National Development and Reform Commission (NDRC) over the past few months has delayed controversial price increases planned by several manufacturers of household and personal care products, the most prominent being those planned by Unilever...

May 18th, 2011
William Turner

US exports to China performed strongly in the first quarter of 2011, reaching $26 billion--the second-highest quarterly performance for US exports to China ever, behind the fourth quarter of 2010. Given that first quarter exports over the past decade have typically accounted for 22-23 percent of full year exports, total US exports to China could reach about $115 billion this year, surpassing last year's record high of $92 billion. This projection may be...

May 18th, 2011
Kyle Sullivan

Companies operating in China can expect power shortages this summer as electricity providers reduce supply to offset financial losses caused by government price caps on electricity. Electricity rationing has already taken effect in nearly two dozen provinces and autonomous regions, and further control measures are expected as electricity demand peaks in the coming months. The shortages come amid PRC regulators' growing push to increase energy efficiency in...

May 18th, 2011
Matt Van Osdol

The PRC National Development and Reform Commission (NDRC) recently revised an important industrial policy catalogue that will guide China's industrial development over the next five years. The 2011 Catalogue Guiding Industrial Restructuring--updated from the 2005 version and released April 26, 2011--provides guidance on PRC economic development plans that affect foreign companies and their domestic competitors. Specifically, the revised catalogue seeks to...

May 11th, 2011
Ryan Ong
Executive Summary Progress was made on several issues important to the US business community at the US-China Strategic and Economic Dialogue (S&ED), which concluded yesterday afternoon in Washington, DC, after two days of discussions on various high-level political, security, and economic issues. Both sides brought sizable delegations of senior officials from a range of government agencies, including military representatives for the first time. China's indigenous innovation and government...
May 4th, 2011
Francesca Baruffi

Regulatory transparency in China has improved in recent years because of PRC government initiatives to increase public access to rule-making processes, but significant room for improvement remains, according to a recent US-China Business Council (USCBC) report. The report--released last month--found that PRC government agencies continue to have a mixed record of complying with commitments to release drafts of all economic laws and regulations for 30-day...

May 4th, 2011
Ryan Ong

The US agenda on the economic side of next week's Strategic and Economic Dialogue (S&ED), will likely prioritize commercial issues such as China's innovation and government procurement policies, intellectual property rights (IPR) enforcement, rulemaking transparency, and bilateral investment issues. China's top commercial issue will likely be reduced controls on US technology exports. These pre-meeting assessments come from USCBC sources in Beijing and...

May 4th, 2011
Matt Van Osdol

Labor costs across China continue to rise in 2011 as municipal and provincial governments increase minimum wages and companies face pressure to unionize and initiate collective bargaining. According to PRC Vice Minister of Human Resources and Social Security (MOHRSS) Yang Zhiming, more than 13 of China's 31 provinces have announced minimum wage increases so far this year--many of which come on top of last year's minimum wage increases. The PRC government...

May 4th, 2011
Nancy Huang

The PRC government will provide incentives to encourage technological breakthroughs, increase Chinese companies' competitiveness in the global economy, and bolster China's strategic emerging industries, according to PRC Minister of Science and Technology (S&T) Wan Gang's recent statements on S&T development over the next five years. Research and development (R&D) incentives--outlined in the 12th Five-Year Plan (FYP, 2011-15) and the Medium and...

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