Despite progress on competition concerns at the December 2014 Joint Commission on Commerce and Trade (JCCT) meeting, competition enforcement under the Antimonopoly Law (AML) remains a high-profile concern for many US companies in China.
China Market Intelligence
US companies conducting government affairs (GA) in China face a wide range of challenges in interacting with government regulators and policy stakeholders.
Suspending problematic policies that restrict US companies’ ability to sell information technology (IT) products in the China market, eliminating proposed regulations that would disadvantage foreign companies operating in certain industries, and enforcing the Antimonopoly Law (AML) fairly against both domestic and foreign companies: these are just some of the US-China Business Council’s (USCBC)
China’s lead food and health safety regulator, the China Food and Drug Administration (CFDA), will focus on continued restructuring and increased enforcement efforts in 2015, according to statements made to the US-China Business Council (USCBC). USCBC led a group of eight companies in a roundtable discussion with Director General Yuan Lin of the CFDA in Beijing on December 5.
When a foreign company wants to construct a new building in China, it is required to work with a so-called “design institute,” a Chinese company that must approve every part of the design. Although this is ostensibly a simple process, US companies have found a number of challenges that frequently arise when working with design institutes.
Intellectual property has received high-level attention from the Chinese government in recent weeks, with government agencies actively touting progress on intellectual property (IP) issues, particularly increased enforcement activity and a growth in registered patents, trademarks, and copyrights through the first half of 2014.
Overcapacity, or a glut of production capabilities, is a growing concern for US-China Business Council (USCBC) member companies in their China operations, according to USCBC’s 2014 business environment survey.
American companies doing business in China are experiencing continued pressure on profit margins, driven by increasing local competition and rising costs, according to the US-China Business Council’s (USCBC) 2014 member survey. The survey, which will be released next week, shows that uncertainty about China’s policy direction is also coloring perceptions about the business environment.