China Market Intelligence

December 22nd, 2010
Caitlin Clark

At this year's Central Economic Work Conference, top PRC leaders decided to pursue a more "prudent" monetary policy in 2011, officially shifting away from the relatively loose monetary policy that has prevailed since 2008. The decision echoed a Chinese Communist Party (CCP) Politburo Standing Committee announcementearlier this month, which laid out similar macroeconomic policies for restructuring in 2011.

Leaders set 2011 economic goals...
December 22nd, 2010
William Turner

US President Barack Obama on December 9 announced new steps in the administration's efforts to reform the US export control system--including a draft rule for comment that lays out new criteria and procedures for determining whether and to what extent certain exportable goods will be restricted. The proposed criteria should increase the number of products US firms can sell globally, though important caveats will likely limit new sales opportunities in the...

December 22nd, 2010
Nancy Huang and Kyle Sullivan

As the end of the two-month public comment period for China's proposed 12th Five-Year Plan (FYP, 2011-15) approaches, PRC policymakers are looking ahead to the next stage of the FYP drafting process: setting priorities for individual provinces and government agencies. A recent article by PRC Minister of Industry and Information Technology Li Yizhong in Qiushi--a top-level political theory periodical issued by the Chinese Communist Party Central Committee...

December 22nd, 2010
Christine Kahler

China's merger and acquisition (M&A) activity increased in 2010, and the country plans to continue promoting its M&A market at home and abroad. Most recently, the Shanghai government in November announced that it will accelerate the construction of M&A-related auxiliary services to facilitate deals and that the city may create a national M&A association. This followed the PRC State Council's September release of national measures to...

December 16th, 2010
Ryan Ong

On the eve of a planned state visit by PRC President Hu Jintao in January, the annual US-China bilateral trade talks made varying degrees of progress in areas of concern to US companies, including indigenous innovation, government procurement, intellectual property rights (IPR), and market access barriers in agriculture, telecom, express delivery, and pharmaceuticals. Businesses in affected sectors should see improved market conditions, though the extent...

December 8th, 2010
Matt Van Osdol

China has strengthened oversight of cross-border money transfers and raised banks' foreign exchange reserve requirements to further curb non-trade and non-investment-related capital inflows. Separately, the PRC State Administration of Foreign Exchange (SAFE) nationalized a pilot program designed to help streamline import payments and facilitate trade under a new national directory system.

SAFE cracks down on illicit money transfers...
December 8th, 2010
Christina Nelson

China's leadership will be crucial to resolving global economic imbalances and political conflicts, former US Secretary of State Madeleine Albright said during a speech at the US-China Business Council's (USCBC) 2010 Gala, held in Washington, DC, last week. Nearly 350 guests from USCBC member companies, US and PRC governments, and the China-watching community attended the event. Guests included US Secretary of Commerce Gary Locke and USCBC's Chair and the...

December 8th, 2010
William Turner and Julia Zhao

With the full plenary meeting of the Joint Commission on Commerce and Trade (JCCT) just one week away, US and PRC officials are not expected to finalize the outcomes until the delegations meet in Washington, DC, on December 14-15. US government negotiators are believed to be prioritizing concerns related to indigenous innovation, intellectual property rights, government procurement, and agricultural products. PRC negotiators are prioritizing US export...

December 8th, 2010
Nancy Huang and Kyle Sullivan

Labor pressures in China will likely continue as the PRC government aims to strengthen employee benefits and increase wages. During the US-China Business Council's (USCBC) annual China Operations Conference in Shanghai on November 18, government and industry representatives discussed China's latest labor developments and how multinational corporations (MNCs) should prepare for continued cost increases. Human resources (HR) in China is a top operating...

December 8th, 2010
Caitlin Clark and Sue Hao

China continues to tighten control over foreign representative (rep) office operations with the release of new requirements for registration renewals and stiffer penalties for violations. The new rules follow a previous notice on strengthening rep office administration released in January and advance the PRC government's recent efforts to improve oversight of foreign rep offices.

The PRC State Council on November...

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