China Market Intelligence

June 19th, 2019
By Chris Miller
China is aggressively phasing out fossil fuels and encouraging the development of new energy vehicles in its auto sector to improve the industry’s carbon footprint. Some of the policies associated with these goals have set impractical deadlines and created market distortions, but there is room for optimism in the government’s ongoing efforts to refine its approach.

China plans to ban the sale of fossil fuel powered vehicles by 2040 according to the Ministry of Industry and Information...

September 20th, 2018
By Jack Kamensky and Owen Haacke

The increase of environmental enforcement actions following the implementation of China’s Environmental Protection Law in January 2015 has had a mixture of positive and negative effects on the business operations of US-China Business Council (USCBC) member companies. Temporary shutdowns and supply chain disruptions have negatively affected company operations, leading many to consider how to proactively mitigate the effects. At the same time, fairer enforcement has helped level the...

September 20th, 2018
By Chynna Hawes

On September 7, the 13th National People’s Congress Standing Committee (NPCSC), China’s constitutional authority, released its five-year legislative plan, outlining and prioritizing major legislative tasks into three classes that, in principle, are listed in descending priority; however, items are not passed or deliberated in sequence.

The 13th NPCSC's legislative plan includes 69 “Class I” projects to be completed by March 2023. However, many Class I projects...

September 20th, 2018
By Jake Parker

As summer draws to a close, I would like to highlight a few trends USCBC’s China offices are observing based on their conversations with our membership, Chinese media, government sources, and other key influencers.

Tariff Impact

Tariffs were the most common discussion topic with foreign company executives in China over the summer.  While the majority of USCBC members invested in China are manufacturing here to access the local market, some...

March 7th, 2018
By Owen Haacke

Beijing has released a number of policies to improve the environment and transition to clean, energy-efficient industry, resulting in the shuttering of high-pollutant operations. Strong central government and party-led environmental enforcement campaigns in 2017 to cut pollution reduced capacity and raised costs in some industries. Environmental enforcement, based on the 2015 Environmental Protection Law, remains a top priority for the government. In 2018, China aims to continue to...

March 7th, 2018
By Owen Haacke

Eighty-nine percent of US-China Business Council (USCBC) member companies view rising costs as a top concern in the China market, according to USCBC’s 2017 Member Survey. Costs have been a top concern for China operations for more than a decade.

Labor is the top cost for companies

The leading cost concern for American companies in China is human resources. Wages continue to increase significantly year to year:

Seventy-three percent of...

August 18th, 2017
Ministries Tasked with Liberalizations, IP Protection, and Preferential Tax Policies

Following modest revisions to the Catalogue Guiding Foreign Investment (CGFI) in June, China’s State Council on Wednesday announced reform measures to attract additional foreign investment to China. The measures task specific ministries with implementing 22 items important to foreign companies, including increasing penalties for intellectual property rights infringement, offering preferential tax...

August 16th, 2017
By Jake Laband and Juliana Batista

As China urbanizes, and workers move from factories to offices, the construction and operation of buildings will account for a growing share of Chinese cities’ energy consumption and carbon emissions. While the buildings in most cities in China accounted for 20 to 25 percent of municipal energy consumption in 2013, buildings in Beijing, a major business and administrative center, accounted for more than 50 percent of the city’s municipal energy consumption in 2010, a number that...

July 12th, 2017
By Owen Haacke

Thousands of companies have moved, shut down, or reduced capacity since China’s central government increased inspections in their implementation of the 2015 Environmental Protection Law. A variety of additional environmental regulations have been released since the law’s enactment and promise a sharp uptick in environmental inspections, which could have far-reaching consequences for foreign company operations. To proactively minimize these risks, the US-China Business Council (...

June 28th, 2017
By USCBC Staff

On Friday, China’s State Council released a revised list of investment restrictions that may allow companies in a number of industries additional market access in the 11 designated free trade zones (FTZs) around the country. The revised negative list, which names sectors that retain foreign investment restriction,  goes into effect on July 10, 2017.  

The openings announced today apply only to foreign companies’ operations in the free trade zones. It is unclear how these openings...

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