China Market Intelligence

November 13th, 2019
By Angela Deng and Jack Kamensky
China has made significant changes to intellectual property and technology transfer policies. The deal is expected to resolve many longstanding agricultural trade barriers, which could increase Chinese purchases if tariffs are removed. Agreements on the financial services and currency portions of the deal have mostly been settled, and China has already announced the types of financial openings that will be included in the deal.

With an agreement “in principle” reached earlier this month,...

November 13th, 2019
By Chynna Hawes
The United States continues to block efforts to reform the Appellate Body, which will cease to function on December 11. A recent ruling in favor of China underscores the United States’ long-term frustration with the WTO and its dispute settlement system.

In less than a month, the World Trade Organization (WTO) dispute settlement mechanism will effectively cease to function, with potentially severe implications for the multilateral trading system. On December 10, the terms of two of the three...

November 13th, 2019
By Pearson Goodman
The draft regulations had positive developments related to IP protection and forced technology transfers. They failed to address the national security review mechanism, a key concern of US businesses. USCBC member companies would like to see further commitments that the standards-setting and government procurement processes are fair and open to foreign firms.

On October 14, the Chinese Ministry of Justice (MOJ) shared with the US-China Business Council (USCBC) an advanced copy of its draft...

November 12th, 2019

Following the release of the draft implementing regulations for the Foreign Investment Law (FIL) by the Ministry of Justice on November 1, the Chinese government has released more documents further clarifying and implementing two components of the FIL. Last Friday, the Ministry of Commerce (MOFCOM) released two draft measures on the information reporting system for the FIL for public comment.

According to the draft measures, MOFCOM will be responsible for coordinating and implementing...

November 5th, 2019
Craig Allen

USCBC member companies,

Recent comments by the Chinese and US governments indicate that both sides are preparing for the announcement of a “phase one” agreement by mid-November.

What’s the big deal?

The outlines of the agreement are clear: the Chinese side will push forward commitments on intellectual property rights (IPR), financial services market access, agricultural purchases, agreement to not manipulate exchange rates, and promises not to engage in forced...

October 30th, 2019
By Angela Deng and Yue Chen
The corporate social credit system and other administrative measures will be a key tool for China to enforce its IPR regime. This raises a variety of concerns regarding transparency, effectiveness, and fairness of the system. How foreign companies will be impacted by these measures will depend on how China balances administrative enforcement with the implementation of its other mechanisms to protect and enforce IPR.

The Chinese government is exploring the use of its corporate social credit...

October 30th, 2019
By Melinda Xu, Banny Wang, Xuhong Zhao
Several provincial governments appointed banking executives to key political positions, which may indicate a greater focus on financial reform and intensifying competition between regions. China recently announced personnel changes, including at the Ministry of Foreign Affairs and the State Council offices in charge of Macau and Taiwan affairs. CBIRC is now operating with only five active vice chairmen.

As the fourth plenary session of the 19th Central Committee of the Communist Party of...

October 30th, 2019
By Jake Parker
USCBC’s Board of Directors met with Chinese cabinet-level officials in Beijing this month. Delegates pressed for a negotiated agreement with substantive outcomes. Chinese officials expressed uncertainty about SOE reform.

Senior Chinese leaders stressed progress in bilateral negotiations and a commitment to accelerate domestic economic reform efforts during an October 16 to 17 visit to Beijing by a delegation of the US-China Business Council (USCBC) Board of Directors.

The delegation...

October 16th, 2019
By Angela Deng and Chynna Hawes
The US government is exploring a number of actions to address long-standing concerns around the financial transparency and national security risks posed by Chinese companies with access to US capital markets. Any potential action taken by the administration could have a substantial impact on the competitiveness of both countries’ capital markets as well as the trajectory of US-China relations.

Recent inter-agency discussions have explored potential actions to restrict the types of access...

October 16th, 2019
By Jack Kamensky and Chris Miller
Increased acceptance of international standards as a basis for Chinese national standards has reduced barriers for foreign businesses. Concerns about China’s increased participation in international standards setting can be mitigated through improved due process in international standards-setting bodies.

Standards serve as the building blocks for product development and help ensure product functionality, interoperability, and safety. However, the landscape for standards setting is complex—...

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