Several provincial governments appointed banking executives to key political positions, which may indicate a greater focus on financial reform and intensifying competition between regions. China recently announced personnel changes, including at the Ministry of Foreign Affairs and the State Council offices in charge of Macau and Taiwan affairs.
China Market Intelligence
Senior Chinese leaders stressed progress in bilateral negotiations and a commitment to accelerate domestic economic reform efforts during an October 16 to 17 visit to Beijing by a delegation of the US-China Business Council (USCBC) Board of Directors. The delegation met with Premier Li Keqiang, China Banking and Insurance Regulatory Commissioner Guo Shuqing, State Administration of Market Regulation Minister Xiao Yaqing, National Development and Reform Commission Vice Commissioner Ning Jizhe...
Recent inter-agency discussions have explored potential actions to restrict the types of access that Chinese companies have to US capital markets, such as listing on US stock exchanges and receiving investments from US investors.
Standards serve as the building blocks for product development and help ensure product functionality, interoperability, and safety. However, the landscape for standards setting is complex—countries set their own standards through a variety of government-led and grassroots-driven processes, and they also send stakeholders from government, industry, and academia to participate in international standards-setting organizations (SSOs).
The World Bank and the Development Research Center, a think tank under the Chinese government’s State Council, recently released Innovative China: New Drivers of Growth, a report meant to address the slowing yet maturing nature of China’s economic development, and to highlight areas the government can look toward to drive growth in the future.
The Ministry of Justice (MOJ) has provided USCBC with an advance copy of its draft implementing regulations for the Foreign Investment Law (FIL). The FIL was passed by the National People’s Congress in March and, along with its implementing regulations, will come into effect on January 1, 2020. In May, USCBC provided input to China’s National Development and Reform Commission on what the implementing regulations should include.
Financial services companies in China are becoming increasingly reliant on artificial intelligence (AI) technologies to reduce costs, improve efficiency, and become more customer-centric. The changes unfolding in China’s financial technology (fintech) market will present opportunities and challenges for US companies looking to compete or enter this industry, especially in light of China’s efforts to master the entire industrial chain for AI-based fintech.
A survey conducted by the Pew Research Center in the summer of 2019 reveals the changing tide of public opinion regarding China, the challenge it poses for the United States, and how that challenge should be addressed. Laura Silver, the lead researcher on the project, shared key findings in a presentation to USCBC members:
Official relations between the United States and Hong Kong are governed by the United States-Hong Kong Policy Act of 1992 (“Policy Act”), which recognizes Hong Kong as an entity distinct from mainland China for the purposes of US law.
Market access issues related to standards persist while non-science-based standards and unclear distinctions between mandatory and voluntary standards add challenges to compliance. While access to standards setting has improved, many intangible barriers remain. Companies that position themselves as industry leaders and work through associations to build industry consensus often enjoy greater success in influencing standards.