China Market Intelligence

June 3rd, 2019
By USCBC Staff

China Announces an Unreliable Entity List

China’s Ministry of Commerce (MOFCOM) on Friday announced it would establish an “unreliable entity list” for foreign entities and persons who cause serious damage to Chinese companies by cutting off supplies for “non-commercial” reasons. The action appears to take aim at the US Entities List, to which Huawei was recently added, and the recent executive order on purchases of foreign technology products. While the details of how companies will...

May 22nd, 2019
By Owen Haacke

Several US-China Business Council (USCBC) member companies are looking closer at planning visas both to the United States and China to avoid disruptions to their regular business operations. Changes to US visa policies and processing times have impacted company planning, and companies should make sure to plan all business travel far in advance.

Changes to US visa processing times and policies:

Processing times: Processing times for US visa applications in...
May 22nd, 2019
By Jack Kamensky
On the same day that China hiked tariff rates on $60 billion of US goods, it created a process allowing companies to apply for products to be excluded from additional tariffs. Although the exclusion process incorporates many of USCBC recommendations, several aspects of the process leave more to be desired. Whether China grants an exclusion for a given product will ultimately depend on political factors which are unpredictable at this time.

On May 13, the State Council Customs...

May 22nd, 2019
By Angela Deng
Huawei was recently placed on the US Entity List, which bars US companies from selling or transferring technologies to the Chinese telecom company on national security grounds. The United States has provided a temporary waiver to US companies to continue some of their business transactions with Huawei until August 19. The United States has embarked on a global effort to warn allies about the security risks about Huawei’s equipment, but its strategy has yet to produce the desired result....
May 22nd, 2019
By Wang Muchen and Chynna Hawes
Several policies affecting foreign companies may be revised this year, including the Copyright, Export Control, and Solid Waste laws, as well as regulations on cybersecurity, tax, health, and financial services. Implementing regulations for the Foreign Investment Law are on the agenda and are expected to be finalized before the law is enacted in January 2020, though the agenda provides no indication of what policies this may include. The National People’s Congress legislative agenda, which...
May 21st, 2019
By USCBC Staff

The Trump administration has given some companies doing business with Huawei a temporary reprieve from the ban instituted last week.

On Monday, May 20, the Bureau of Industry and Security (BIS) announced a 90-day Temporary General License, effective through August 19, for companies in specific categories to continue business with Huawei. BIS added Huawei to the entity list last week, identifying it as a company not aligned with US security interests, and requiring...

May 16th, 2019
By USCBC Staff

Photo courtesy of A4-Nieuws

The US Commerce Department on Wednesday evening added Huawei and its 68 affiliates to its “Entity List,” a move that bars US companies from selling or transferring American technology to the telecommunications giant without first acquiring a license. Citing earlier indictments against Huawei, Commerce argued that Huawei poses risks to American security interests. The addition of Huawei to the Entity List took effect immediately, with the...

May 14th, 2019
By USCBC Staff

On Monday night, the Office of US Trade Representative (USTR) officially announced in a Federal Register Notice its plan to impose a 25 percent tariff on the remaining $300 billion of Chinese imports not yet subject to tariffs. Like the previous rounds of tariffs imposed under Section 301, the $300 billion list will follow a public comment process and a public hearing on June 17, after which interested parties will have seven days to submit post-hearing comments. Given the timeline...

May 13th, 2019
By USCBC Staff

Trade tensions between the United States and China escalated today when China announced its retaliation against the US tariff increase from last week. At the same time, China announced the creation of an exclusion process for its retaliatory tariff lists. The United States is preparing to impose additional tariffs on all remaining Chinese imports not yet subject to tariffs, on top of its tariff rate hike to 25 percent on the $200 billion list. Both sides are still engaged in...

May 8th, 2019
By Angela Deng
In anticipation of further openings, global asset managers, who still represent a small share of China’s market, have begun engaging with local regulators and searching for potential partners. Potential gains in China market share are moderated by structural barriers and Chinese investors’ preference for domestic fund managers with more market reputation and name recognition. How China crafts further regulations will determine whether global asset managers face increased competition, obtain...