China Market Intelligence

October 15th, 2014
Zoe Sophos

As US and Chinese government officials prepare for a busy season of bilateral engagement—including the November meetings of the Asia-Pacific Economic Cooperation (APEC) and a November bilateral meeting between Presidents Obama and Xi, US officials and their Chinese counterparts are hard at work on the agenda for the December 2015 Joint Commission on Commerce and Trade (JCCT), which will cover key trade and economic topics, including market access, intellectual property rights, transparency,...

October 1st, 2014
Dan Markus

When a foreign company wants to construct a new building in China, it is required to work with a so-called “design institute,” a Chinese company that must approve every part of the design. Although this is ostensibly a simple process, US companies have found a number of challenges that frequently arise when working with design institutes. These can include theft or misappropriation of intellectual property (IP), requirements to procure from specific vendors, and poor service. The US-China...

October 1st, 2014
Owen Haacke

Overcapacity, or a glut of production capabilities, is a growing concern for US-China Business Council (USCBC) member companies in their China operations, according to USCBC’s 2014 business environment survey. For the first time since 2009, overcapacity made the top 10 list of challenges, with almost 50 percent of respondents saying that in recent years the issue has gotten progressively worse. This deterioration is due in part to government stimulus measures that have encouraged...

September 3rd, 2014
Stephanie Henry

US governors are heading to China in increasing numbers to seek potential investors for public and private projects. Since 2009, US governors have led 58 trade missions to China, helping to usher in more than $34 billion in direct investment over the past five years. Those trips have helped ratchet up total Chinese FDI in the United States to almost $40 billion since 2000, according to the Rhodium Group consultancy.

But it isn’t just local trade missions that are spurring...

August 20th, 2014
Owen Haacke

Recent food safety incidents in China have caused many foreign food and consumer goods companies to reexamine their quality assurance systems. Lapses can have serious consequences: one oversight can disrupt a regional supply chain, lead to a dramatic drop in profits, or cause serious harm to the reputation of a foreign brand, as happened in the Shanghai Husi tainted meat case. The US-China Business Council (USCBC) has recently interviewed several member companies to identify best...

July 23rd, 2014
Angela Fan

Chinese President Xi Jinping announced in mid-June that officials in his administration will push forward an “energy revolution,” focused on reducing energy consumption, increasing energy supply, and improving energy efficiency. While the announcement was short on implementing details, the three reform strategies outlined in his speech provide the underpinning to China’s future policy direction and market movements, and provide guidance for foreign companies seeking new opportunities in...

July 23rd, 2014
Dan Markus

Producers who violate China’s food safety standards could face stiffer penalties if a draft revision of the country’s Food Safety Law is approved later this summer. This would be the first-ever revision to the law, which was first implemented in 2009 to address growing domestic concerns about improper food additives, food product supervision, safety standards, and inadequate legal repercussions against violators, particularly in the wake of the 2008 melamine-tainted milk scandal. The revised...

June 25th, 2014
Owen Haacke and Daniel Markus

China’s recent push to address its environmental concerns—in particular its rampant air pollution—has brought to the forefront an internal debate on how the country’s leaders will cut carbon emissions. Recent reports have indicated the likely expansion of carbon trading program in the near future, while a proposal for a carbon tax appears to have been temporarily shelved. As the Chinese government begins preparatory work for its 13th Five Year Plan (FYP), it remains unclear to what extent...

June 25th, 2014
Ryan Ong

US and Chinese officials must address operating challenges, particularly discriminatory intellectual property (IP) criteria, that US companies face in trying to qualify for high- and new-technology enterprise (HNTE) status in China, according to new US-China Business Council (USCBC) advocacy materials presented to officials and experts affiliated with the forthcoming US-China Innovation Dialogue.

One of China’s core innovation tax policies, the High and New Technology Enterprise (HNTE...

June 25th, 2014
Stephanie Henry

Amid a slowdown in China’s economy and tension between the United States and China on a variety of issues, US and Chinese negotiators are preparing for the upcoming sixth annual Strategic & Economic Dialogue (S&ED) taking place in Beijing in early July. This year’s dialogue is likely to continue discussion on top issues, including trade secrets protection and legislation, intellectual property localization, China’s economic rebalancing, financial sector reform, the exchange rate, and...

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