A transition back to the United States offers an opportunity to reflect on some of the trends the US-China Business Council’s China offices are observing in the field. These trends represent a cross section of information from USCBC members, Chinese and US government officials, and the organization’s in-house analysis.
China Market Intelligence
The process of reviewing public comments on Commerce’s notice to define emerging technologies has slowed down US efforts to unilaterally control emerging technologies, while the process to define foundational technologies has not yet begun. The US government is planning to revise its export control regulations to make it easier to reject license applications for exports of high-tech products to China. The US government has added more Chinese entities to the Entity List and rejected more...
Anti-monopoly Law (AML) revision updates make slow progress amid internal debates. M&A reviews are uncertain amid volatile bilateral relations, pending guidelines related to the abuse of IP enforcement guidelines and the auto sector create compliance uncertainties while enforcement is ongoing. Chinese experts press business community to combat unfair administrative treatment through the fair competition review scheme, and administrative and judicial appeal procedures.
The Communist Party of China (CCP) is launching an education campaign nationwide to remind its 90 million members of the Party's fundamental purpose and historic mission. China’s cybersecurity rounds out leadership by naming a third vice minister. The architect of China’s state-owned enterprise reform will now lead the powerful market and antitrust regulator.
China’s latest revisions to its investment negative lists made several changes in a variety of sectors to allow more foreign participation, but few in areas that are priorities for foreign companies. On June 30, China’s National Development and Reform Commission (NDRC) and Ministry of Commerce (MOFCOM) jointly released the national and Free Trade Zone (FTZ) foreign investment negative lists, along with an updated industry catalog for encouraging foreign investment.
Many of China’s standardization policy goals for 2019 have positive implications for foreign companies, including efforts to make standards setting more market driven, effective, transparent, and reflective of industry feedback. Efforts to harmonize domestic and international standards could bring benefits to foreign companies, although Chinese international standards-setting ambitions raise concerns about China using its influence to inappropriately benefit Chinese companies.
China is aggressively phasing out fossil fuels and encouraging the development of new energy vehicles in its auto sector to improve the industry’s carbon footprint. Some of the policies associated with these goals have set impractical deadlines and created market distortions, but there is room for optimism in the government’s ongoing efforts to refine its approach.
Presidents Trump and Xi will meet on the sidelines of the G20 Summit near the end of June, with preparatory talks starting this week. It is unlikely that a final trade deal will be reached at the meeting. Before the presidential meeting was announced, China moved forward with a number of retaliatory measures against the United States.
You can now listen to two podcasts produced by the US-China Business Council (USCBC). The first, the China Business Minute, is a quick catchup with our China offices released every Monday. The second, the China Business Review Podcast, is the podcast companion to our digital magazine of the same name, covering a single topic in depth.
USCBC requests your input on the recent draft Personal Information Cross-Border Security Review Measures released today by the Cyberspace Administration of China (CAC). The draft measures, implementing regulations of the Cybersecurity Law, apply to all network operators who wish to send personal information abroad.