China Market Intelligence

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...

August 15th, 2014
Ryan Ong

The National Certification Administration of China (CNCA) on July 30 announced a batch of testing labs and certification providers that are officially designated to be able to offer services related to the China Compulsory Certification (CCC) mark, a safety mark for products sold or used in the Chinese market. Of the approximately 90 testing labs and certification bodies that were accredited, only two were foreign-invested enterprises: UL (Suzhou) Quality Control Co., Ltd. (for certain types...

August 11th, 2014
Stephanie Henry

The United States and China have maintained a steady schedule of negotiations on the Bilateral Investment Treaty (BIT), with the next round of talks expected to be held in September in China. The last round of negotiations, held in July in Washington, focused on the text of the agreement. At the 2014 Strategic & Economic Dialogue (S&ED), both sides agreed to “reach agreement on core issues and major articles of the treaty text by the end of 2014” and start work on a negative list by...

August 6th, 2014
Shuting Xiong

China’s sweeping overhaul of its decades-old residency system has the potential to boost consumer spending, increase labor mobility, and open up new investment opportunities in urban infrastructure. The new rules, announced at the end of July, will make it easier for migrant workers—blue-collar and white-collar alike—to gain access to housing, healthcare and education in the cities where they live.

The State Council’s new reform plan for China’s household registration system—known as...

August 4th, 2014
Matthew Margulies

On July 25, the Shanghai Municipal People's Congress Standing Committee passed the 2014 China (Shanghai) Pilot Free Trade Zone Regulations, a new set of rules for managing the Shanghai Free Trade Zone (FTZ). The new regulations, which went into effect on August 1, vary little from the 2013 version. They do, however, include new sections on streamlining tax policies and promoting the rule of law in the zone.

The new regulations replace the Administrative Measures for the China (...

August 1st, 2014
Andrew Gong

American views on China are dimming, even while Chinese attitudes toward the United States have become more positive in recent years, according to an annual survey by the Pew Research Center. The US-China Business Council (USCBC) hosted a discussion July 29 in which researchers shared the results of their 2013 survey on world attitudes toward China and the United States.

Just 35 percent of Americans said they had a “favorable” attitude toward China, compared to 37 percent in 2012 and...

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...