China Market Intelligence

July 23rd, 2014
Nick Marro

In November 2012, China’s outgoing President Hu Jintao told the next generation of Chinese leaders that systemic corruption could lead to the downfall of the party and the state. With his anti-corruption drive well into its second year, President Xi Jinping seems to have taken that warning to heart. But it isn’t just Chinese government officials feeling the heat: US firms operating in China have also suffered unintended consequences of the campaign, in areas ranging from government access to...

July 23rd, 2014
Angela Fan

Chinese President Xi Jinping announced in mid-June that officials in his administration will push forward an “energy revolution,” focused on reducing energy consumption, increasing energy supply, and improving energy efficiency. While the announcement was short on implementing details, the three reform strategies outlined in his speech provide the underpinning to China’s future policy direction and market movements, and provide guidance for foreign companies seeking new opportunities in...

July 23rd, 2014
Owen Haacke

China has launched a series of national pilots that seek to make state-owned enterprises (SOEs) more answerable to market forces. Six SOEs will participate in four reforms: establishing investment management companies, promoting the development of mixed-ownership structures, allowing autonomy to executive boards, and cracking down on corruption. This is a small step forward in China’s push to improve the efficiency and competitiveness of its national champions. If implemented nationwide,...

July 23rd, 2014
Dan Markus

Producers who violate China’s food safety standards could face stiffer penalties if a draft revision of the country’s Food Safety Law is approved later this summer. This would be the first-ever revision to the law, which was first implemented in 2009 to address growing domestic concerns about improper food additives, food product supervision, safety standards, and inadequate legal repercussions against violators, particularly in the wake of the 2008 melamine-tainted milk scandal. The revised...

July 23rd, 2014
Lingling Jiang

Building on the efforts of the Shanghai Free Trade Zone (FTZ), China’s national leaders said at the beginning of July that they would develop two nationwide negative lists in the near future: one to regulate market access and another to regulate foreign investment. According to official statements, these negative lists will spell out sectors closed to investment, and both will apply to foreign companies, replacing the current Catalogue of Guiding Foreign Investment (CFGI). Meanwhile, some...

July 10th, 2014
USCBC Staff

A commitment to an accelerated timetable for a high-standard bilateral investment treaty (BIT)—a key objective of the US-China Business Council (USCBC)—was the primary commercial outcome of this year’s US-China Strategic and Economic Dialogue (S&ED). Less specific outcomes were announced on a range of issues, including efforts to restart the Information Technology Agreement (ITA) negotiations, progress on China’s domestic reforms and trade secrets protection, the exchange rate, and...

July 9th, 2014
Matthew Margulies

A recently released revised list of foreign ownership restrictions in the Shanghai Free Trade Zone (FTZ) offers reductions that are an incremental step forward in China’s broad economic reforms, but of little practical use to foreign companies due to the limited number and geographic scope of the openings. While changes to the “negative list” should not be dismissed as meaningless, the limited number of substantive reductions falls short of sending a strong signal to the foreign business...

July 9th, 2014
Ryan Ong

Newly released draft regulations from the State Administration of Industry and Commerce (SAIC) could limit the abilities of foreign companies to exercise intellectual property rights (IPR) in China as they do in other markets. The most recent draft of the Provisions to Prohibit Abuse of IP to Eliminate or Restrict Competition retains language from previous drafts that has been problematic for foreign companies, including provisions on essential facilities, IP and standards, and IP-related...

July 9th, 2014
USCBC Staff

China’s economic reforms have yet to tangibly impact US-China Business Council (USCBC) member company operations and are creating policy uncertainty among American executives. That was one key message USCBC President John Frisbie delivered to senior Chinese government officials during his visit to China at the end of June.

Frisbie urged Chinese government officials to reduce foreign ownership restrictions in China as a means of generating greater American company support for a US-...

July 9th, 2014
Jake Parker

Increased air pollution, deteriorating traffic conditions, and rising office rent prices are leading some US companies in China to offer more flexible working arrangements to white collar employees, according to recent interviews with more than 20 US-China Business Council (USCBC) member companies. To adapt, companies are taking a wide variety of different approaches, with the majority of companies allowing employees flexible start and finish times, allowances to work from home, or...

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