China Market Intelligence

December 19th, 2014

The United States and China wrapped up three days of commercial negotiations in Chicago yesterday, making  progress on competition policy, intellectual property rights (IPR), and product approvals in agriculture and medical devices. The 25th Meeting of the US-China Joint Commission on Commerce and Trade (JCCT)—an annual bilateral dialogue about commercial cooperation and concerns—built on the success of the November bilateral meeting between Presidents Barack Obama and Xi Jinping by...

December 3rd, 2014
Owen Haacke

In November, Chinese and US negotiators surprised the global business community by announcing an end to a standoff over high-technology tariffs. In agreeing to move forward with the World Trade Organization’s (WTO) Information Technology Agreement (ITA), China paved the way for the slashing of tariffs on items from semiconductors to video game consoles. The breakthrough on ITA was a welcome development, but there are a number of other WTO initiatives that both the United States and China are...

November 12th, 2014
Ryan Ong

US President Barack Obama concluded a constructive three-day visit to China earlier today with announcements of new bilateral deals on a range of issues important to US companies doing business in China, including a significant change in visa policy, reduced tariffs for trade in information technology products, and new targets related to climate change.

Obama’s visit to Beijing included not only his participation in the 2014 Asia-Pacific Economic Cooperation (APEC) organization’s...

October 15th, 2014
Zoe Sophos

As US and Chinese government officials prepare for a busy season of bilateral engagement—including the November meetings of the Asia-Pacific Economic Cooperation (APEC) and a November bilateral meeting between Presidents Obama and Xi, US officials and their Chinese counterparts are hard at work on the agenda for the December 2015 Joint Commission on Commerce and Trade (JCCT), which will cover key trade and economic topics, including market access, intellectual property rights, transparency,...

October 1st, 2014
Dan Markus

When a foreign company wants to construct a new building in China, it is required to work with a so-called “design institute,” a Chinese company that must approve every part of the design. Although this is ostensibly a simple process, US companies have found a number of challenges that frequently arise when working with design institutes. These can include theft or misappropriation of intellectual property (IP), requirements to procure from specific vendors, and poor service. The US-China...

October 1st, 2014
Owen Haacke

Overcapacity, or a glut of production capabilities, is a growing concern for US-China Business Council (USCBC) member companies in their China operations, according to USCBC’s 2014 business environment survey. For the first time since 2009, overcapacity made the top 10 list of challenges, with almost 50 percent of respondents saying that in recent years the issue has gotten progressively worse. This deterioration is due in part to government stimulus measures that have encouraged...

September 3rd, 2014
Stephanie Henry

US governors are heading to China in increasing numbers to seek potential investors for public and private projects. Since 2009, US governors have led 58 trade missions to China, helping to usher in more than $34 billion in direct investment over the past five years. Those trips have helped ratchet up total Chinese FDI in the United States to almost $40 billion since 2000, according to the Rhodium Group consultancy.

But it isn’t just local trade missions that are spurring...

August 20th, 2014
Owen Haacke

Recent food safety incidents in China have caused many foreign food and consumer goods companies to reexamine their quality assurance systems. Lapses can have serious consequences: one oversight can disrupt a regional supply chain, lead to a dramatic drop in profits, or cause serious harm to the reputation of a foreign brand, as happened in the Shanghai Husi tainted meat case. The US-China Business Council (USCBC) has recently interviewed several member companies to identify best...

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
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...