China Market Intelligence

December 13th, 2017
By Ricky Altieri

Since its inception in late 2015, the Beijing Intellectual Property Court’s (BIPC) pilot program to build an IP case system in China has produced meaningful reform, but more can be done to protect businesses from IP infringement and deliver swift punishment to offending parties. An addition to China’s broader Case Guiding System, the BIPC’s case system has created and continues to update a database of “guiding cases” that parties or judges may reference in court. The program is...

November 29th, 2017
By Owen Haacke

In a renewed push by China after the 19th Party Congress, officials are calling on foreign companies to support the creation of party organizations among their employees. This move to politically organize the workforce has created concern among some foreign companies about the party groups’ potential influence on corporate decisionmaking and resource requirements to support such groups. If previous company experiences with these organizations is an indication, however, these groups...

November 8th, 2017
By Patrick Lozada and Owen Haacke

The second draft of China’s Ecommerce Law takes a step forward in addressing some of the concerns the US-China Business Council (USCBC) raised about the first draft of the law, particularly in terms of intellectual property (IP) protection.

The second draft was submitted October 31 to the Standing Committee of the National People’s Congress for review and is currently open for comment; the final law is expected to be released in 2018. Drafting of the law began in...

November 8th, 2017
By Lipei Zhang and Richard Altieri

The State Council’s recently released interim measures for fair competition review appear to be a positive step toward improving the business environment for foreign companies. While it is too early to say how strictly the interim measures will be enforced, they appear to put pressure on local and provincial governments by making them accountable to joint ministries that report to the central government. Moreover, the opportunity for public comments during the drafting process may...

November 8th, 2017
By David Solomon

Chinese regulations on tendering and bidding practices published by the Ministry of Finance (MOF) in July are a promising sign for US pharmaceutical and medical device manufacturers that government procurement behavior will be better regulated to guarantee consideration of quality alongside price. However, true improvement for the industry will require regulators to faithfully implement the law and refrain from unofficial practices such as local favoritism, which sometimes plague...

October 11th, 2017
By Meg Kelly

Intellectual property (IP) theft and forced technology transfer are serious issues that need to be addressed in China, said Senior Vice President Erin Ennis in testimony about the Section 301 investigation to a US government committee on Tuesday on behalf of of the US-China Business Council (USCBC). The most effective way to address the issues is with solutions that will curb the problems faced by American companies in China, rather than punitive tariffs, Ennis said.

October 11th, 2017
By Anna Ashton

On September 4, Chinese authorities banned initial coin offerings (ICOs) as an illegal form of public financing. The People’s Bank of China (PBOC) issued a joint statement with other regulators describing ICOs as illegal public financing mechanisms with the potential to “seriously disrupt the economic and financial order.” Later in September, Chinese authorities ordered most China-based cryptocurrency exchanges to halt trading and shutter operations. The Wall Street Journal ...

September 27th, 2017
By David Solomon

Recently announced provincial reimbursement drug lists (PRDLs) provide possible new opportunities for US pharmaceutical companies seeking to expand market reach for their drugs in China. These updated subnational lists largely reflect the national reimbursement drug list (NRDL), which was released by the Ministry of Human Resources and Social Security (MOHRSS) on March 17 for the first time in eight years. However, some PRDLs include potential new openings for drugs that were not...

September 27th, 2017
By Patrick Lozada

The third draft of China’s Standardization Law could create a barrier for foreign companies trying to market or manufacture products in China. The draft supports “indigenous innovation” in the formulation of standards, a term which has been used to promote the use of domestic technology and standards over proven international ones.

A standard provides requirements, specifications, guidelines, or characteristics to be used consistently to ensure materials, products...

September 27th, 2017
By Maryan Escarfullett

Copyright-related intellectual property (IP) disputes in China have increased as a result of the growth of online streaming services and domestic media studios. Despite stalled revisions to the 1990 National Copyright Law, central government authorities have issued some new policies to strengthen protection of the IP rights of creative works.

The Supreme People’s Court (SPC) approved regulations earlier this year that blacklist companies and individuals for...