China Market Intelligence

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...

June 1st, 2011
William Turner

The significant increase in Chinese outbound direct investment (ODI) to the United States and the rest of the world will likely continue and may provide more opportunities for US companies and service providers. Two recent reports--one by a PRC government organization and the other by a US think tank--highlight this growth and examine future trends.

CCPIT survey forecasts more Chinese ODI

The...

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...

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