China Market Intelligence

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 Chynna Hawes

China’s regulators recently released the first drug traceability proposal since China suspended its previous system in 2016 because of a number of challenges, including complaints of unfair competition and that the government-issued serial number was not compliant with GS1 global standards for pharmaceutical traceability. The goal of the new proposal is to establish a system to trace drugs through the supply chain, prevent counterfeit and substandard drugs from entering the supply...

September 5th, 2018
By Ricky Altieri

Given the size and complexity of the Chinese ecommerce market, foreign companies often struggle to root out operations selling unlicensed or counterfeit versions of their products. The US-China Business Council (USCBC) consulted member companies to identify and create recommendations for the spate of new challenges to intellectual property (IP) protection in the ecommerce space, including:

Seek out memorandums of understanding (MOUs) with ecommerce platforms. Some...

September 5th, 2018
By Jake Laband

Senior Chinese leaders have repeatedly insisted China is improving market access and the investment environment, improving the protection of intellectual property, and ensuring equal treatment of foreign and domestic companies in China. “China’s door of opening-up will not be closed and will only open even wider!” exclaimed President Xi Jinping at the 2018 Bo’ao Forum.

While many foreign companies report positive momentum in China’s economic reform efforts, a...

September 5th, 2018
By Owen Haacke and Melinda Xu

The Standing Committee of the National People’s Congress passed China’s Ecommerce Law on August 31, creating a framework for regulating China’s rapidly growing ecommerce market. The law takes effect January 1, 2019. Guidance on implementation of the law, as well as for cross-border ecommerce, will be released later.

After USCBC submitted comments on the final public draft of the law, the Chinese government made a number of changes to address concerns, including...

August 23rd, 2018
By Huihui Shen and Owen Haacke

US companies are looking at potential opportunities in China’s island province of Hainan—a historically tourism-driven economy that is promoting further openings to foreign business as part of its new status as a free trade zone (FTZ). Hainan will implement the same policies as China’s other FTZs, including the FTZ negative list. Hainan also plans to set up a free trade port, which will have a greater focus on customs clearance than FTZs; the free trade port will be fully...

August 8th, 2018
By Ian Hutchinson

As the Belt and Road Initiative (BRI) spreads, having accounted for $250 billion in construction in about five years, it is inevitable that commercial disputes will emerge. In an effort to expeditiously work through caseloads, the Supreme People’s Court of China (SPC) established the new China International Commercial Courts (CICC) for international commercial cases.

China took a step toward establishing these courts in September 2017 when it signed on to the Hague...

August 8th, 2018
By Chynna Hawes

The Shanghai Free Trade Zone (FTZ) Market Regulatory Authority (MRA) recently issued a penalty decision against a foreign medical product distributor for false promotion under the Anti-unfair Competition Law (AUCL), the revised version of which came into effect January 1. The recently created State Authority for Market Regulation (SAMR) assumed enforcement responsibilities for the AUCL, and in May announced it would step up implementation with a six-month campaign through October....

August 8th, 2018
By Ricky Altieri, Chenyu Wu, Mohan Sun

Made in China 2025 (MIC2025), a central government economic plan that supports the development of advanced technology industries, has resulted in a slew of provincial legal documents with important implications for foreign businesses. Although they vary in specificity and length, these documents illuminate how this broad national initiative is being translated into concrete local government action.

Taking the form of action plans, guidelines, and opinions, this...

August 8th, 2018
By Owen Haacke

On July 28, the US-China Business Council (USCBC) submitted comments to the National People’s Congress concerning the third draft of the Ecommerce Law. The English and Chinese versions of the comment letter are on the USCBC website.

USCBC authored analyses of the first and second drafts of the law for members and provided comments on the first draft to the Chinese government. In successive drafts, the law’s focus on consumer data privacy, restrictions on ecommerce...

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