China Market Intelligence

June 4th, 2014
Nick Marro

On May 28, the US-China Business Council (USCBC) hosted its annual China Operations Conference (CHOPS) in Beijing, featuring government and industry presentations on Sino-US commercial relations.  US and Chinese government officials said that despite recent diplomatic tensions over cybersecurity, the economic relationship between the two countries remains strong and will continue to develop as the government moves forward with reforms.

Keynote speakers for the conference were Deputy...

May 29th, 2014
Tim Donovan

China’s economic ascent has turned the Ministry of Commerce’s (MOFCOM’s) Antimonopoly Bureau—China’s merger control authority—into an increasingly influential actor in global M&A. Although China’s Antimonopoly Law (AML) has been in place for only five years, MOFCOM has made clear through its actions that it is prepared to review any deal that could have an anti-competitive impact on China’s economy.

Antitrust experts and deal makers have taken note of MOFCOM’s increasing...

May 29th, 2014
Nick Marro

Foreign firms doing business in China could see some streamlining of investment approvals based on finalized National Development and Reform Commission (NDRC) regulations. Released by NDRC on May 20, the Administrative Measures for the Approval and Filing of Foreign Investment Projects will grant more approval authority to local and provincial governments in areas that are considered “encouraged” and “restricted” under the Catalogue Guiding Foreign Investment. This streamlined approval...

May 29th, 2014
Jake Parker

A new set of State Council measures released earlier this month lays out high-level goals and principles that provide an encouraging framework for economic and financial reforms, though details about the role of foreign investment continue to be vague.

The New Nine Measures, published by the State Council on May 9, encourage the development of multi-level capital markets, the reform of state-owned enterprise (SOE) ownership, flexibility in local government financing models, and...

May 23rd, 2014
Xiao Sun

China will limit the number of Initial Public Offerings (IPOs) listing on its Shanghai and Shenzhen exchanges to 100 in the second half of 2014, according to Xiao Gang, President of China Security Regulatory Commission (CSRC). Speaking at a May 19 conference, Xiao said that the listings will be spaced out evenly to ensure a similar number take place each month.

The final number was fewer than what most analysts expected and far fewer than the number of companies waiting in the...

May 14th, 2014
Stephanie Henry

Chinese investment in the United States reached nearly $1.4 billion in the first quarter of 2014, according to new estimates released by Rhodium Group.  Though overall investment slowed from Q1 2013, the number of M&A transactions hit a new high for the quarter—18 in total. In the first quarter, leading sectors for M&A and greenfield investments included auto and aviation, entertainment, real estate, and information technology. Rhodium predicts that 2014 will be a strong year for...

May 14th, 2014
Owen Haacke

China’s top legislative body recently approved long-awaited amendments to the country’s Environmental Protection Law (EPL) that expand local governments’ ability to impose fines and increase the number of organizations that can file public interest lawsuits. The revised law will affect many domestic and foreign companies operating in China, putting more pressure on heavy polluters, while creating opportunities for environmental technology companies. China’s environmental challenges require...

May 14th, 2014
Nick Marro

On April 14, all 40,000 workers of Yue Yuen Industrial, a Chinese shoe manufacturer that supplies American brands such as Nike and Adidas, went on a two-week strike that caused  $27 million in direct losses to the Hong Kong-listed company. Other China-based businesses have experienced increased labor activism in recent years, with labor watchdog China Labor Bulletin reporting a total of 202 labor incidents in the first quarter of 2014, a 31 percent increase from last year. Media reports...

May 14th, 2014
Stephanie Henry

US exports to China continue to contribute to US job and economic growth, with total exports reaching $120 billion in 2013. The US-China Business Council’s (USCBC) 2013 report US Exports to China by State shows that total US exports to China grew by $11 billion over the past year—more than the United States’ total exports to Argentina in 2013. Throughout the United States, 42 states counted China among their top three export markets in 2013, while 32 states exported more than $1 billion...

May 14th, 2014
Tim Donovan

In 2014, China’s quality, standards, and conformity assessment agencies plan to focus on initiatives that support reform by elevating the importance of China’s inter-ministerial joint conference mechanism for certification and accreditation—a body that aims to coordinate the formulation of China’s standards. According to agency work plans, this body will help unite the objectives of other agencies regulating the standards and conformity assessment sector. Additional government objectives...

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