China Market Intelligence

April 16th, 2014
Wenham Shen

Starting April 1, seven Chinese cities and provinces raised their monthly minimum wages by an average of 12.5 percent, according to China News. These cities and provinces include Beijing, Shanghai, Tianjin, Chongqing, Shaanxi, Shenzhen, and Shandong. Shanghai tops the list with a new monthly minimum wage of RMB 1,820 ($292), followed by Shenzhen at RMB 1808 ($290).

These changes are the latest in a series of multi-year annual minimum wage increases. According to China’s Ministry of...

April 9th, 2014
Ryan Ong

In recent weeks, several leadership transitions have taken place at Chinese government agencies that work closely with foreign companies, including the National Development and Reform Commission, Ministry of Foreign Affairs, State Intellectual Property Office, and the State-Owned Assets Supervision and Administration Commission. These transitions also involve important changes to work portfolios that touch on issues affecting foreign companies doing business in China.


April 7th, 2014
Tim Donovan

With economic growth slowing sharply over the last three months, China’s State Council announced a spending package last Wednesday consisting of tax breaks for small businesses, social housing projects, and the acceleration of railway construction across central and western China. No overall cost was attached to the announced package. However, its limited scope signals that policymakers are avoiding the type of massive, investment-led push used by officials in the past in favor of a targeted...

April 2nd, 2014
Jake Laband

China’s long-awaited urbanization plan indicates that the country’s leaders will focus on increasing access to social services, allowing greater labor mobility through residency permit reforms, and increasing the role of the market in real estate pricing. These policies could provide new opportunities to foreign companies operating in China.

The plan, released on March 16, will begin to shift urbanization efforts away from traditional investment-heavy priorities like real estate...

April 2nd, 2014
Erin Ennis

As the United States and China restart negotiations on a bilateral investment treaty (BIT), the US-China Business Council (USCBC) has put together a primer explaining a key component of any BIT agreement— the “negative list.” In the context of a bilateral investment treaty, such a list clearly lays out sectors that would be closed to foreign investment in the United States, even as other sectors are opened. All sectors not included on the list would be open to foreign investment—with some...

April 2nd, 2014
John Frisbie

We are starting to hear a lot about a bilateral investment treaty (BIT) with China. Here’s hoping we hear a lot more.

The United States and China restarted BIT negotiations last summer when China agreed to include key equal treatment principles advocated by the US-China Business Council and others.

The United States already has an open investment environment and we see the benefits on a daily basis.  Foreign investment, including investment from China, creates American jobs,...

April 2nd, 2014
Shelly Zhao

Reforms to China’s financial sectors may be advancing in a key area—interest rate liberalization. Depending on its implementation, these reforms could modernize how companies access capital in China and impact the competitiveness of domestic companies that have relied on inexpensive credit.

Reiterating that deposit rate liberalization will be the “final step” in China’s interest rate liberalization process, People’s Bank of China (PBOC) Governor Zhou Xiaochuan said in March that China...

April 2nd, 2014

US-China Business Council (USCBC) President John Frisbie highlighted the need for China to reduce foreign ownership restrictions in meetings with senior officials in Beijing and Shanghai last week. He also raised intellectual property (IP) issues, lobbied for changes in to allow more foreign companies to qualify for China’s innovation tax incentives, and flagged concerns about the National Development and Reform Commission’s (NDRC) price investigations, particularly attempts to exclude...

April 2nd, 2014
Owen Haacke

In 2014, China’s agencies in charge of energy and the environment (E&E) are focused on implementing national policies to address air pollution, strengthen environmental protection regulation, diversify China’s energy mix, and improve regulatory efficiency, according to various agencies’ 2014 work plans (links to which are provided in the attached PDF). The central government will explore new measures to promote environmental protection and increase energy efficiency in line with reforms...

April 2nd, 2014
Lingling Jiang

In 2014, China’s agencies in charge of approving and regulating foreign investment are focused on facilitating a more open economy, creating an open business environment, and lowering foreign investment restrictions, according to various agencies’ 2014 work plans (links to which are provided in the atttached PDF). This follows Chinese senior leadership’s call to allow the market to play the “decisive” role of allocating resources, made during the third plenum of the Chinese Communist Party...