China Market Intelligence

February 13th, 2019
By Chris Miller

The regulations aim to limit growth of traditional automobile production, encourage NEV production from strong and competitive companies, and weed out weaker producers through M&As and increased competitive pressure.

Most companies will find it difficult to meet government NEV investment approval standards.

The Chinese government seeks to balance a perceived need to grow NEV production with current overcapacity and misallocated resources...

February 13th, 2019
By Angela Deng and Ricky Altieri

Some of China’s top officials have started to endorse “competitive neutrality,” a principle under which enterprises of all forms of ownership and sizes are treated equally.

China has introduced some reform measures that align with OECD guidelines on competitive neutrality.

Tax and competition reforms have been published, but key details such as commercial rates of returns, equal access to financing, and procurement practices remain to be...

February 13th, 2019
By USCBC Staff
Despite moderating GDP growth, the Chinese economy expanded 6.6 percent in 2018, exceeding the official growth target of 6.5 percent. A combination of market liquidity, tariff-driven slumping exports, and new technology restrictions are seen as the biggest headwinds to economic growth in 2019. USCBC member companies are evaluating existing and future investments in China and considering alternative markets for new investments.

Economists predict growth will continue to moderate...

February 13th, 2019
By Vivian Zhu

The US-China Business Council held its 38th annual Forecast conference in Washington, DC, on January 31. The program featured comprehensive projections for the Chinese economic environment, US trade policy, the state of US-China relations, and commercial best practices for businesses with operations in China, with a focus on the ongoing trade negotiations.

Robert Dohner, nonresident senior fellow at the Atlantic Council, gave this year’s economic forecast and William Evanina from the...

January 30th, 2019
By Angela Deng

Trade talks to date have touched on a wide range of issues, but have not narrowed differences on structural issues like IP protection, forced tech transfers, and subsidies to China’s state-owned enterprises.

China has taken some steps to reduce trade tension, namely pledging to buy more US products, and a few measures addressing substantive US concerns on trade.

Vice Premier Liu He is meeting on January 30 and 31 with US Trade Representative...

January 30th, 2019
By Ricky Altieri

Further information on the Ministry of Public Security’s 2018 Personal Information Standard may provide clarity for companies on data management measures.

Regulations on Critical Information Infrastructure and Measures on Cross Border Data Flow are expected to come into effect in 2019.

The regulations may expand the scope of industries affected by cyber regulators.

As China’s cyber apparatus has expanded to cover data...

January 16th, 2019
By Chynna Hawes

Draft amendments make some progress in strengthening China’s intellectual property rights (IPR) system, including by increasing penalties, extending patent term for designs, and adding patent term restoration for innovative pharmaceuticals.

Remaining concerns include vague language, enforceability, and lack of a patent linkage system, a key issue for US pharmaceuticals.  

This is an important opportunity to advocate the interests of US...

January 16th, 2019
By Melinda Xu and Owen Haacke

Most of the changes are consistent with central government reforms of 2018, such as the restructuring of agencies in market supervision, health, insurance, environmental protection, natural resources, and science and technology.

Some local governments now have autonomy to adjust restructuring based on local conditions. The restructuring potentially can provide the local government more flexibility to formulate policies regarding business investment, talent...

January 16th, 2019
By USCBC Staff

China has loosened market access restrictions over the past couple of years in several industries including financial services and new energy vehicles (NEVs), but other market access barriers remain.

Few of these openings have yet resulted in tangible business opportunities for US companies, while some of their European competitors have been granted licenses.

Between a slowing domestic economy and US-China trade tensions, China is under...

January 16th, 2019
By Chris Miller and Owen Haacke

Early enforcement is focused on business license verification, illegal reselling of cross-border goods, and tax evasion.

The law has already prompted behavioral changes in the industry, such as the move by some platforms to implement self-regulating measures to ensure compliance; unlicensed reselling of cross-border goods has also slowed.

Additional high-level guidance that took effect in January significantly liberalizes cross-border...

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