China Market Intelligence

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...

January 2nd, 2019
By Shen Wang and Yujin Zhang

Throughout 2018, the US-China Business Council (USCBC) tracked the progress of China’s government restructuring, and has recently published updated organization charts of key government agencies as a resource for members. Though China’s National People’s Congress (NPC) approved the institutional restructuring in March 2018, Chinese regulators only began releasing the official “three determination” plans outlining the responsibilities, internal organization, and staffing of newly...

January 2nd, 2019
By Melinda Xu and Sun Yi
By mid-November, all Chinese provinces and municipalities’ government restructuring plans were approved by the central government, resulting in many new leadership appointments at the local level. Several provinces and municipalities have had changes to their senior leadership, including Beijing, Tianjin, Hainan, Hubei, Guangdong, Chongqing, Fujian, and Jiangxi. A significant number were transferred between regional governments. Newly-appointed officials will play roles in the commercial...
January 2nd, 2019
By Angela Deng

Restrictions on incoming foreign investments in, and exports of, US critical technologies will impact almost every type of business relationship, requiring in-depth export-controls analyses by US businesses.

The burdens of compliance with these regulatory changes will fall heavily on US startups that have been the target of Chinese investments and acquisitions, but have not previously been subject to investment reviews.

While investment...

January 2nd, 2019
By Jack Kamensky

Rather than new reforms, China’s economic priorities for 2019 include familiar promises of market opening, a fairer business environment, and market-oriented reform, while restating industrial policy plans and strengthening state-owned enterprises (SOEs).

As China attempts to address areas of concern in its economy, somewhat contradictory policy signals have emerged which may create challenges in implementation.

Last month, China’s top leaders...

January 2nd, 2019
By Yan Yu and Chynna Hawes

The revised draft Foreign Investment Law includes stronger language on intellectual property rights (IPR) protection and forced tech-transfer, potentially addressing key US concerns ahead of January trade talks.

Despite progress on some fronts, several concerns raised about previous draft versions remain unaddressed, including language that opens foreign companies to discriminatory treatment and the lack of an appeals process for national security review....