China Market Intelligence

December 19th, 2007

The PRC State Council recently announced new annual leave regulations and the 2008 PRC holiday schedule, both of which take effect January 1, 2008.

According to the annual leave regulations, all employees in China are eligible for 5 days' leave after 1 year of service, 10 days' leave after 10 years, and 15 days' leave after 20 years. Under special circumstances, for example because of production or work needs, employees may carry over unused leave to the following year. In addition,...

December 19th, 2007

Since the US government representatives involved in the US-China Strategic Economic Dialogue (SED) have returned to Washington, DC, from Beijing, new details have emerged about what occurred during the third round of the high-level talks. As reported in last week's memo to US-China Business Council (USCBC) members, the dialogue covered topics such as food and product safety, financial services, energy and the environment, transparency, rebalancing China's growth model, and innovation.

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December 19th, 2007

Heading into the new year, China's leaders appear increasingly concerned about inflation and runaway lending. At China's 2007 Economic Work Conference, which took place December 3-5, the PRC leadership formally presented the country's official economic plan and goals for the upcoming year. The meeting focused primarily on keeping price increases limited to structural inflation (that is, inflation resulting from fiscal policy) and tightening monetary policy to keep the economy from...

December 19th, 2007

The US-China Business Council (USCBC) hosted luncheons on intellectual property rights (IPR) protection in Washington, DC, and Shanghai on December 12 and 13, respectively.

Washington

During USCBC's luncheon with Mark Cohen, IPR attache at the US Embassy in Beijing, Cohen briefed members on the US Embassy's IPR protection efforts in China. He noted that while the existing World Trade Organization cases have reduced the platforms in which IPR concerns are discussed,...

December 19th, 2007

The State Council Legislative Affairs Office, Ministry of Finance (MOF), and State Administration of Taxation (SAT) jointly released the long-awaited Enterprise Income Tax Law Implementing Regulations on December 11. The implementing regulations clarify several important provisions of the Enterprise Income Tax Law (EIT Law)--which unifies the income tax rate for both foreign-invested and PRC enterprises at 25 percent--but also leave some key areas unaddressed. Both the EIT Law and the...

December 12th, 2007
US-China JCCT talks show incremental progress

The 18th session of the US-China Joint Commission on Commerce and Trade (JCCT) concluded in Beijing on Tuesday, with further incremental progress on various issues important to companies, but no single headline-grabbing outcome likely to capture the attention of the US media or satisfy critics of China's trade regime.

Commerce Secretary Carlos M. Gutierrez and US Trade Representative Susan C. Schwab...

December 12th, 2007
Background

After long discussions within the PRC government, a draft PRC Energy Law was published for comment last week by the Office of the National Energy Leading Group, an energy policy research and development arm of the National Development and Reform Committee (NDRC). The draft law, which aims to unify China's decentralized energy policy and policy implementation, is open for comment until February 1, 2008. The law's 14 chapters cover a wide range of energy policy...

December 12th, 2007

The PRC National Development and Reform Commission (NDRC) and State Environmental Protection Administration (SEPA) recently released the long-delayed 11th Five-Year Plan (FYP, 2006-10) for Environmental Protection and announced new funding for environmental protection. The plan, released on November 22, pledges increased efforts to promote environmental protection, including by fighting pollution and, for the first time, emphasizes reducing greenhouse gases to combat climate change. It...

December 5th, 2007

With less than a month before the PRC Enterprise Income Tax Law takes effect on January 1, 2008, the PRC State Administration of Taxation (SAT) has yet to release the law's crucial explanatory implementing regulations, leaving companies' financial planning for 2008 riddled with uncertainties. Key provisions on high- and new-tech status, withholding tax, and the status of special economic and national development zones remain to be clarified. In preparation for the new law, some foreign-...

December 5th, 2007
Background

The online payments system in China has grown rapidly over the past five years. According to iResearch Consulting Group, China's online sales may reach RMB 51 billion ($6.9 billion) in 2007, up from RMB 31.2 billion ($4.2 billion) in 2006 and RMB 18.6 billion ($2.5 billion) in 2005.

Most urban Chinese consumers hold debit cards rather than credit cards. (According to the People's Bank of China, in 2006 China issued 1.08 billion debit cards tied to an...

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