China Market Intelligence

September 17th, 2014
Stephanie Henry

Your customers have probably heard that US companies do business in China so they can cut costs and outsource American jobs. It is a phrase that’s been uttered many times—so much so that many Americans think it’s true. But the simple fact is that it’s not.

Why are US companies in China in the first place?

Most companies that do business in China are there to access the China market. They want to be close to their regional operations and customers—more than 300 million middle...

September 17th, 2014
Matthew Margulies

Like energy, human resources, and financial capital in previous generations, data has become a key input for many companies hoping to improve their products and services and better understand their customers. For American companies doing business in China, the insights into customers and operations gained through big data tools are increasingly valuable. But with China’s data collection regulations still in their infancy, American companies must be careful in the collection and processing of...

September 17th, 2014
USCBC Staff

American companies doing business in China are experiencing continued pressure on profit margins, driven by increasing local competition and rising costs, according to the US-China Business Council’s (USCBC) 2014 member survey. The survey, which will be released next week, shows that uncertainty about China’s policy direction is also coloring perceptions about the business environment.

While most American companies continue to view China among the top five markets globally, their...

September 16th, 2014
Jake Parker

New amendments to China’s Budget Law now allow local governments to issue debt in domestic bond markets. Debt issuance is a central aspect of the revamped law, which was passed at the end of August and includes 22 news articles and more than 82 changes. But also noteworthy are revisions to budget management structures, budget disclosure requirements, and transfer payments regulations between government agencies. These changes help improve government transparency and advance China’s anti-...

September 3rd, 2014
Ryan Ong and Ellen Huber

From recent investigations in the auto parts industry to “dawn raids” at foreign IT firms, China’s rising level of antimonopoly enforcement activity has raised concerns for many US companies doing business in China. In a just-released US-China Business Council (USCBC) report, 86 percent of firms surveyed expressed some level of concern about competition enforcement activities in China.

While both foreign and domestic companies have been targets of monopoly-related investigations, in...

September 3rd, 2014
Owen Haacke

China’s top leadership plans to tackle executive pay at state firms as it focuses on implementing its broader economic and political reform agenda. Speaking to other members of the country’s top reform group on August 18, Chinese President Xi Jinping said state-owned enterprises (SOEs) must ensure that their salary levels are “proper” and their salary structure “reasonable.” He also stressed the importance of implementing other reforms announced with great fanfare last November, saying it is...

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
Stephanie Henry

When the US Congress reconvenes in September, one of its major goals will be finalizing legislation to fund the US government. While most of this debate will focus on domestic issues with no direct relationship to China, the US-China Business Council (USCBC) has again identified language in at least one House appropriations bill funding the Departments of Commerce, Justice, and various science-related agencies that would be detrimental to the US-China relationship.

These...

August 20th, 2014
USCBC Staff

Doing business in China can be a study in contrasts for American companies. On the one hand, it remains a strong market for American goods and services. On the other, it is a challenging place to do business, as reflected in the 2014 US-China Business Council’s (USCBC) member survey results. Topping the list of challenges—which will come out in mid-September—is competition with Chinese companies. Not far behind are human resource issues, which have been among the top five challenges...

August 20th, 2014
Jake Laband and Hengrui Liu

Discussions on the rule of law and economic development in western China are set to dominate China’s next meeting for its senior party leadership—the fourth plenum of the 18th Communist Party of China (CCP) Congress—scheduled for October.  News reports indicate that the plenum will feature discussions related to corruption, party building, and reform, but will also devote considerable attention on the ongoing corruption investigation into China’s former security chief Zhou Yongkang. But how...

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