China Market Intelligence

April 9th, 2008

The Ministry of Commerce (MOFCOM) released its 2008 Leading Opinion on Attracting Foreign Direct Investment (FDI) last month. In addition to reiterating long-standing FDI policies that encourage investment in clean and energy-efficient industries, the high-tech and services sectors, and central and western China, the report also highlighted some of last year's key investment dynamics. These included considerable growth in services sector FDI--more than half of all new foreign-invested...

April 9th, 2008

US Treasury Secretary Henry Paulson met with China's top leadership and his new counterpart for the Strategic Economic Dialogue (SED) during a visit to Beijing last week to discuss the next SED meeting, which is scheduled for June in Washington, DC. In addition to SED-related meetings, Paulson also delivered a speech on energy and environmental technology, in which he encouraged better intellectual property protection and elimination of tariffs.

Laying the groundwork for the SED...
April 9th, 2008

The PRC National Development and Reform Commission (NDRC) recently released China's 11th Five-Year Plan (FYP, 2006-10) on Renewable Energy Development, which calls for renewable energy to reach 10 percent of overall energy consumption by 2010. US companies could benefit from some of the FYP's goals--such as granting tax preferences for renewable energy-related projects and increasing technology and equipment exports to China.

The FYP, which is a revision of the Renewable Energy Mid-...

April 9th, 2008

The US-China Business Council (USCBC) is continuing its spring rollout of communication materials designed to better inform the debate in the United States about US-China trade. The latest release, US-China Trade in Context, printed below and posted on USCBC's website with graphics, updates our analysis of the bilateral trade deficit in the context of the US global trade balance.

USCBC released a report on US state exports to China in March, and a report on exports to China from each...

April 2nd, 2008

The PRC State Administration of Taxation (SAT) recently issued regulations that will redistribute corporate income tax payment across corporate headquarters and local branches. SAT also released regulations that revoke existing high- and new-tech enterprise tax incentives for companies, with no details yet on how enterprises can re-apply for HNTE status under the new criteria in the Enterprise Income Tax (EIT) Law. These new policies could significantly increase the tax compliance burden...

April 2nd, 2008

The PRC State Council this week assigned functions and portfolios to China's newly appointed vice premiers and state councilors. New Vice Premier Wang Qishan will hold the trade and foreign investment portfolio--in addition to the finance portfolio--and will likely succeed former Vice Premier Wu Yi in leading the Strategic Economic Dialogue (SED) discussions with the US government, according to official PRC media reports. (Wang met with Treasury Secretary Henry Paulson, who chairs the US...

April 2nd, 2008

The State Council on March 28 issued the draft State Council Regulations on Reporting of Enterprise Concentrations for public comment, laying out the basic conditions under which mergers and acquisitions will require a formal filing with the new Antimonopoly Enforcement Authority (AMEA). Though it has not yet been formally established, the AMEA, which will report directly to the State Council, is designated by China's Antimonopoly Law (AML) as the regulator in charge of implementing...

April 2nd, 2008

Several China-related intellectual property rights (IPR) developments have surfaced recently, including the reorganization and disbandment of some IPR-related agencies, the release of an IPR plan slightly modified from last year, and the appointment of panelists in an IPR-related WTO case against China.

IPR agencies restructured

The reach of the government reorganization plan, announced at the National People's Congress meeting last month, will extend into the IPR...

March 26th, 2008

Foreign companies may no longer be able to enjoy full, voting-member status in standardization committees, subcommittees, and working groups that develop technical standards in China, according to US-China Business Council (USCBC) sources and a document released earlier this year on the Standardization Administration of China's (SAC) website. The foreign business community, including the US embassy, has had difficulty obtaining clarification on possible SAC policy changes that would further...

March 26th, 2008

The PRC State Council's Development Research Center (DRC) held its ninth annual China Development Forum in Beijing March 23-24 to address major issues in China's development, including energy, the environment, innovation-oriented growth, healthcare, and domestic consumption. The DRC is the government's think tank; the forum is an opportunity for business executives and economists to learn firsthand about PRC government approaches to crucial economic and social issues and to exchange views on...

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