China Market Intelligence

June 29th, 2011
Christine Kahler

Extreme weather conditions in China this year have highlighted the country's water supply problems--a significant concern for the central government. Rainfall levels along the Yangzi River between March and May declined by up to 50 percent compared to the same period in previous years. The limited rainfall has increased concerns about drinking water supplies, food prices, and electricity production in many provinces and added pressure to the country's...

June 29th, 2011
Ryan Ong

Advocacy efforts to delink China's indigenous innovation and government procurement policies made an important step forward when the PRC Ministry of Finance (MOF) yesterday posted a notice that voids three key related measures beginning July 1. The US-China Business Council (USCBC) had pushed for rescinding the measures in advocacy outreach to the PRC and US governments over the past three months.

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June 29th, 2011
William Turner and Ryan Ong

Senior US officials raised a wide range of key investment concerns in Beijing this week as they took stock of agreements under the US-China Joint Commission on Commerce and Trade (JCCT) and other bilateral dialogue commitments. Separately, US and PRC officials will expand dialogue in the months ahead on additional intellectual property rights (IPR) topics not covered under the JCCT.

US, PRC officials hold JCCT vice minister-level meetings...
June 29th, 2011
Kyle Sullivan

Foreign employees in China may be required to make financial contributions to China's social security funds beginning July 1, when the new PRC Social Insurance Law takes effect. The PRC Ministry of Human Resources and Social Security (MOHRSS) recently released for comment draft measures that clarify foreign employee participation in China's social insurance schemes. The US-China Business Council (USCBC) has solicited comments from member companies and will...

June 15th, 2011
Julia Zhao and Matt Van Osdol

The US-China Business Council (USCBC) recently held conferences in Washington, DC, and Beijing that featured industry, government, and academic updates on business-related trends in China and the future of US-China commercial relations. In addition, USCBC's board of directors earlier this month met with US Secretary of State Hillary Rodham Clinton and House Ways and Means Chair Dave Camp (R-MI).

Annual Membership Meeting...
June 15th, 2011
Christine Kahler

The PRC Ministry of Commerce (MOFCOM) recently released for comment two draft regulations that shed light on how MOFCOM will assess business concentrations in the future. MOFCOM on June 3 released the Draft Rules on the Assessment of the Effect of the Concentration of Business Operators on Competition. Expanding on Article 27 of the PRC Antimonopoly Law (AML), the draft rules describe the basic factors and procedures MOFCOM's Antimonopoly Bureau (AMB) will...

June 15th, 2011
Kyle Sullivan

The PRC government is taking steps to address mounting concerns that China will face its worst electricity shortage in seven years. In response, municipalities throughout the country are reportedly drafting work plans to ensure stable electricity supplies in their jurisdictions. The PRC National Development and Reform Commission (NDRC), which sets China's energy prices, has also ordered non-residential power consumers to pay higher rates.

NDRC plans...
June 1st, 2011
William Turner

China recently issued two announcements that have important implications for manufacturers using rare earths in their products. The PRC State Council last monthreleased a notice on rare earths industrial development that purportedly aims to improve environmental protection, advance government oversight, and aid development in strategic industries. The PRC Ministry of Commerce (MOFCOM) simultaneously announced that it has expanded the scope of export...

June 1st, 2011
Ryan Ong and Samuel Birnbaum

China's complex standards system presents opportunities and challenges for foreign companies that wish to participate in standards-setting, according to a US-China Business Council (USCBC) report released today. The report indicates that though some foreign companies have been able to participate in China's standards system, most companies--including USCBC members--face significant barriers to participation. In USCBC's 2010 Member Priorities Survey Results...

June 1st, 2011
Nancy Huang

A new central government plan to build large, globally competitive state-owned enterprises (SOEs) may bring foreign companies greater competition over the next five years. Though the PRC State Asset Supervision and Administration Commission (SASAC) has not yet released its 12th Five-Year Plan (FYP) on Central SOE Development (2011-15), media reports indicate SASAC will promote central SOEs in China's pillar and strategic emerging industries, specifically...

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