China Market Intelligence

September 21st, 2011
Marc Ross

In his first speech to an American business audience in China as US ambassador, Gary Locke stressed that the United States and China must work together to help the global economy return to full strength. The speech, co-hosted by the US-China Business Council (USCBC) and the American Chamber of Commerce in China, also included a frank assessment of the market access barriers and level playing field issues confronted by US companies operating in China.

September 21st, 2011
Sunny Xu and Ryan Ong

Provincial governments across China are making modest progress toward breaking links between indigenous innovation and government procurement policies. The delinking of these policies was a key commitment during PRC President Hu Jintao's January 2011 trip to the United States and the May 2011 Strategic and Economic Dialogue. This new round of provincial revisions follows central-level policy changes announced earlier this summer and builds on notices...

September 21st, 2011
Ryan Ong

Draft trademark rules currently available for public comment include important proposed changes that are likely to affect how companies protect their trademarks in China. Released by the State Council Legislative Affairs Office (SCLAO) on September 2, the latest draft revision of the PRC Trademark Law contains some improvements to the existing law, including increased statutory damages caps for trademark infringement, strengthened protection for well-known...

September 21st, 2011
Francesca Baruffi

Companies hiring foreign employees in China will see their human resources costs rise significantly now that foreign employees must also contribute to China's five social insurance funds, according to measures released September 8. The final Provisional Measures on Foreign Workers Participating in Social Insurance in China, which take effect on October 15, mandate that foreign workers, either on international assignment or locally hired, must pay into...

September 21st, 2011
Christina Nelson

China's investments abroad exceeded $68 billion in 2010, expanding by 21.7 percent over 2009, according to a PRC government report on China's outbound direct investment (ODI). Chinese investment in the United States increased by 44 percent, but such investments made up just 1.9 percent of China's total overseas investments.

According to the PRC Ministry of Commerce (MOFCOM), the National Bureau of Statistics, and...

September 7th, 2011
Xiuxiu Zhao

Recent PRC government actions indicate that China is looking to enhance its role in global finance and facilitate the internationalization of its currency, the renminbi (RMB). The PRC government in late August expanded a cross-border RMB trade settlement program and issued draft regulations allowing foreign investors to use offshore RMB to invest in mainland China. Both policies will give foreign companies more opportunities to use RMB for international...

September 7th, 2011
Nancy Huang

Companies accredited as High- and New-Technology Enterprises (HNTE) in 2008 face stricter renewal procedures than when they were first accredited three years ago. According to HNTE rules released in 2008, companies must renew their HNTE status every three years. As HNTE review gets stricter and because the review processes take place locally, companies with accreditation status should work closely with local science and technology offices to understand...

September 7th, 2011
Zoe Zhao

Companies may learn how they can benefit from participation in China's strategic emerging industries (SEIs) in the coming months when PRC regulators release specific policies concerning SEI development. A centerpiece of the 12th Five-Year Plan (FYP, 2011-15) on National Economic and Social Development, the SEIs will drive China's economic growth over the next 10 years, accounting for 8 percent of gross domestic product by 2020, according to PRC government...

September 7th, 2011
Christine Kahler

Recently released rules that formalize China's national security review regime will likely make mergers and acquisitions (M&A) in China a more uncertain process for deals in key sectors. The Notice on the Security Review of Foreign Mergers and Acquisitions of Domestic enterprises, which was released by the PRC Ministry of Commerce (MOFCOM) and took effect on September 1, raises concerns about additional administrative burdens and restrictions for...