China Market Intelligence

April 27th, 2016
Owen Haacke

China recently issued new rules that that offer mixed implications for foreign company qualification for innovation-related tax breaks. Eligibility criteria for a reduced corporate tax rate were tightened by stricter intellectual property (IP) requirements, but the scope of research and development (R&D) expenses that can be written off was loosened.

High- and New-Technology Enterprise (HNTE) IP and...
April 12th, 2016
Zoe Sophos

On April 8, the National Development and Reform Commission (NDRC), in consultation with the Ministry of Commerce, released the Draft Market Access Negative List to be piloted in Tianjin, Shanghai, Fujian and Guangdong. The list catalogues sectors with restrictions on investment by foreign and domestic investors. Although the full negative list was not released, it contains 328 items, including 96 prohibited items and 232 restricted items.
 
The draft will retroactively be...

March 16th, 2016
Yan Yu and Nick Marro

The recently released, and newly effective Administrative Regulations for Online Publishing Service explicitly restricts foreign investors from providing online publishing services, sets licensing and approval requirements for the types of cooperative projects in which domestic and foreign entities can engage, and outlines strict rules on technical equipment and data localization.

These rules, however, have raised questions regarding what type of content is...

March 16th, 2016
Zoe Sophos

China is determined to arrive at a high-standard Bilateral Investment Treaty (BIT) that will benefit US industry as soon as possible, said Li Chenggang, director-general of China’s Ministry of Commerce’s (MOFCOM) Treaty and Law Department and China’s lead BIT negotiator, at a USCBC luncheon program February 25 in Washington, D.C.

China is expected to table a new BIT “negative list” offer in the coming weeks, possibly close to the end of March when presidents Xi...

March 2nd, 2016
Jake Parker

Though China’s slowing growth impacts US company operations, economic restructuring is offering new opportunities to American companies, said a group of US-China Business Council (USCBC) executives during a February 28 roundtable discussion with Treasury Secretary Jacob Lew in Beijing. Lew was in China for the G20 finance ministers’ meeting in Shanghai on February 26 and 27.

Companies also shared examples of persistent market barriers that prevent full access to...

March 2nd, 2016
Pianpian Huang

A year after the amended Consumer Protection Law (CPL) was implemented, consumer complaints in China increased by 14.3 percent. And, as the number of online consumers in China continues to grow—302 million online shoppers spent 1.85 trillion yuan in 2013—the protections are increasingly necessary.

Officials revamped the 20-year-old CPL in 2013 to respond to the enormous changes in consumption patterns, structure and concept, and strengthen consumer rights...

February 17th, 2016
Owen Haacke

Environmental compliance is taking center stage as US companies face implementation of China’s 2015 Environmental Protection Law (EPL), new regulations on improving soil and air quality, and a sharp increase in environmental inspections. The changes are part of a high-level “war on pollution” launched in 2013 to address environmental concerns raised by the public with a bolstered environmental enforcement regime. The changes have led to uncertainty about the environmental licensing...

February 17th, 2016
Stephanie Henry

The US Trade and Development Agency (USTDA) will launch 20 workshops with Chinese agencies over the next two years to engage and educate officials about regulatory issues and best practices, USTDA Director Leocadia Zak told business executives at a February 2 US-China Business Council (USCBC) lunch. She also addressed Asian Infrastructure Investment Bank (AIIB) financing, market access, and the effects of the anticorruption campaign on US businesses.

USTDA funds...

February 17th, 2016
Owen Haacke

To tackle complex administrative licensing processes, US companies in China are refining their government affairs efforts to focus on transparency and communication challenges, as well as obstacles stemming from the anticorruption campaign. The US-China Business Council (USCBC) pinpointed several Chinese government affairs-related licensing issues during interviews with more than 30 member companies in fall 2015 to better understand how companies address them.

Key licensing...
February 17th, 2016
Stephanie Henry

By all accounts, China’s ecommerce market is booming. Chinese customers spent more than $670 billion online in 2015, a more than 40 percent increase from 2014. That trajectory is expected to continue as online consumption grows by 20 percent annually through 2020, thanks to an expanding base of 410 million online shoppers. That strong growth rate is expected to propel ecommerce sales well beyond the $1.5 trillion mark by 2020.

In China, mobile buyers already...

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