China Market Intelligence

August 2nd, 2017
By Maryan Escarfullett

China’s rising debt levels concern investors and banking authorities, but regulators are becoming increasingly active in passing policies aimed at controlling debt and managing risks to the economy. While some analysts are cautious about China’s rising debt, others remain optimistic about the government’s ability to manage the issue.

William Foster, senior vice president and credit risk officer of Moody’s Investors Service, recently explained to USCBC member...

January 25th, 2017
By Jake Parker

Limited progress on State Owned Enterprise (SOE) reform continues to undermine US industry’s confidence in China’s policy direction, but recent announcements limiting SOE outbound investment might be beneficial. Since December, Chinese regulators have increased scrutiny of SOE outbound investment plans, limiting the size and types of permitted deals because of the downward pressure on the renminbi (RMB)....

January 6th, 2016
Pianpian Huang

Woeful performance data from China’s state-owned enterprises (SOEs) may be increasing calls for reform, but a recent policy package does not appear to address fundamental issues around governance and market orientation, despite the accompanying rhetoric.

Total debts at China's state-owned enterprises (SOE) rose 18.2 percent to 78.31 trillion yuan ($12.24 trillion) and profit dropped 9.5 percent to 2.04 trillion yuan ($320 million) from January to November 2015...

September 16th, 2015
Stephanie Henry, Owen Haacke

The State Council’s long-awaited framework for reforming China’s state-owned enterprises (SOEs) marks limited progress on areas of SOE reform such as mixed ownership, asset management, and SOE classification. Some have reported that reforms are “tepid” because they do not make a bolder move towards privatization or a stronger market orientation for SOEs, in line with the goals laid out at the November 2013 Third Plenum. However, the content of the plan—known as the Opinions on...

August 19th, 2015
Owen Haacke

What is the best way to enter into a partnership with a Chinese state-owned enterprise (SOE)? Foreign companies find many good reasons to seek an SOE investment partner, but may also find some unexpected challenges. Thinking through the possible obstacles and paying close attention to the advice and best practices shared by member companies of the US-China Business Council (USCBC) may help US companies navigate the investment process.

Joint-venture (JV)...

August 5th, 2015
Shari Lin

The recent flurry of M&A activity in China reflects the not-so-invisible hand of China’s State-owned Assets Supervision and Administration Commission (SASAC), founded in 2003 to oversee the largest of the non-financial state-owned enterprises (SOEs) in China. While SASAC controlled more than RMB 40 trillion in assets ($6.44 trillion) as of June 2015, the number of central SOEs in its portfolio has shrunk, from 196 in 2003 to 110 as of early August 2015. The US-China Business Council (...

June 24th, 2015
Jake Laband and Owen Haacke

A strong Chinese Communist Party (CCP) hand guiding state-owned enterprise (SOE) management was a central message emerging from recent meetings of the State Council Leading Group on Comprehensively Deepening Reform, China’s high-level interagency group charged with guiding China’s ongoing reform efforts. The meetings on June 5 emphasized the importance of addressing corruption issues while seeking to create “bigger, stronger, and better” SOEs that remain firmly under government control, and...