China Market Intelligence

March 19th, 2014
Angela Fan and Nick Marro

Senior Chinese officials continued to emphasize the importance of market-oriented economic reforms at China’s recent meeting of parliament, though little substantive commercial legislation was passed during the session. Environmental protection, administrative reform, and anti-corruption were major themes of discussion at the second session of the 12th National People’s Congress (NPC), which ended March 13.

Discussions on financial sector reforms received significant attention in...

March 19th, 2014
Owen Haacke

Speaking at this year’s meeting of the National People’s Congress, Premier Li Keqiang urged Chinese policymakers to “declare war” on pollution as part of China’s transition to a more sustainable economic model. Li’s recent statement, in combination with a series of government plans related to pollution control, implies that Chinese regulators will continue to stress environmental compliance requirements and enforcement in the near future, presenting opportunities and challenges for foreign...

March 19th, 2014
Ryan Ong

The US-China Business Council (USCBC) will recommend solutions to foreign investment, intellectual property, and administrative licensing issues in China in a yearly submission to US government trade talk representatives this week. The recommendations—submitted in advance of the annual US-China Joint Commission on Commerce and Trade (JCCT) talks—also address industry-specific issues in areas like healthcare, express delivery, financial services, agriculture, and media.

The 170...

March 19th, 2014
Stephanie Henry

US exports to China experienced a surge at the end of 2013, capping off a year of steady bilateral trade growth and continuing economic recovery. US exports to China grew by 24 percent year-on-year in the fourth quarter of 2013, led by oilseeds and grains, according to data from the US International Trade Commission. October through December were strong months for US exports to China, with each month seeing an increase in exports of at least 20 percent, compared to the same month in 2012...

March 19th, 2014
Shelly Zhao

China continues to significantly lag in its commitments to promote and implement regulatory transparency measures, according to a new US-China Business Council (USCBC) report. USCBC analysis of the National People’s Congress (NPC), the State Council, and selected Chinese government agencies shows varying levels of compliance with transparency commitments. In particular, key agencies continue fall short of regularly publishing regulations for required public comment periods of 30 days. As the...

March 19th, 2014
Stephanie Henry

US companies across nearly every industry and sector face licensing and approvals challenges in China. To help address these challenges, the US-China Business Council (USCBC) has developed a set of recommendations for the Chinese government to help improve its licensing system.  The report calls for equal treatment for US firms in China’s administrative licensing system, and recommending changes to help remedy common challenges companies face when operating or expanding in China. USCBC will...

March 10th, 2014
Ryan Ong

The US-China Business Council (USCBC) has called on US government agencies to address China’s High- and New-Technology Enterprise (HNTE) tax accreditation program with their Chinese counterparts, pushing for revisions that would not discriminate against foreign companies.

The program—which offers qualified companies a 15 percent versus the typical 25 percent corporate income tax rate—contains intellectual property (IP) criteria that make it difficult for foreign companies to qualify....

March 5th, 2014
Angela Fan and Nick Marro

In his opening remarks to the annual meeting of the National People’s Congress (NPC), Chinese Premier Li Keqiang said that comprehensive reform was the government’s “top priority” in 2014. During the next week, delegates to the NPC—China’s legislative body—will have the chance to weigh in on such reforms, which include the expansion of private capital in China’s state sector and the forced shuttering of industrial plants to reduce the country’s choking air pollution.

While few...

March 5th, 2014
Owen Haacke

China’s State Administration for Industry and Commerce (SAIC) revised a series of company registration regulations that remove requirements for up-front capital contributions, eliminate minimum registered capital requirements for certain business entities, and eliminate required annual inspections in favor of simplified annual reporting. The SAIC revisions are part of a yearlong effort by China’s central government to streamline the investment process, a push that stems from the State...

March 5th, 2014
Lingling Jiang

In its recently completed recommendations for the Shanghai Free Trade Zone (FTZ), the US-China Business Council (USCBC) urged China’s central and Shanghai’s local governments to substantially reduce investment restrictions, encourage fair and open market competition, and enact equal treatment for foreign and domestic enterprises operating in the zone. The Shanghai FTZ is expected to be a testing ground for broader economic reform schemes that could eventually be rolled out across the rest of...