China Market Intelligence

March 5th, 2008

China's Finance ministry recently instituted new procedures that PRC government entities must follow when purchasing imported products, potentially making it more difficult for foreign producers to sell to PRC government entities. The Administrative Regulations on Government Purchase of Imported Products, which was issued on December 27, 2007 and took effect the same day, lay out new procedures for government agencies at various levels to gain approval from their corresponding finance...

March 5th, 2008

China will soon release its long-awaited draft healthcare reform plan for public comment, said PRC Premier Wen Jiabao in his government work report to the National People's Congress (NPC) on Wednesday. According to Wen, the PRC government will spend RMB 83.2 billion ($11.7 billion) on healthcare this year--a 25 percent increase from last year. Minister of Health Chen Zhu recently said that implementation of reforms would begin after the draft is released in late March, with pilot projects in...

March 5th, 2008

The US Department of Transportation (DOT) last week approved two nonstop flights to China that will start daily operation next year: a route from Atlanta to Shanghai operated by Delta Air Lines, Inc. and a route from San Francisco to Guangzhou, Guangdong, operated by United Airlines Corp. DOT also proposed to award four other US carriers with nonstop routes beginning in 2009.

According to DOT Secretary Mary E. Peters, following a period for public comments on the proposed routes, DOT...

March 5th, 2008

China's legislature will elect top state leaders, including president and vice president, at the first plenary session of the 11th National People's Congress (NPC), which began Wednesday in Beijing and will end on March 18. This NPC session will thus conclude the formal leadership transition that began at last fall's 17th Chinese Communist Party Congress. Though reviews of major laws are not on the official agenda, discussions in small groups may turn to topics important to US-China Business...

March 5th, 2008

Though the new PRC Labor Contract Law (LCL) took effect January 1, the law's implementing regulations have yet to be finalized and released, causing significant disruptions for domestic and foreign-invested enterprises (FIEs) seeking to revise labor contracts to ensure full compliance. Several sources suggest the implementing regulations may be discussed at the National People's Congress but are unlikely to be released for public comment or issued in final form during the next few months....

February 27th, 2008

US-based Bain Capital LLC and China-based Huawei Technologies Co., Ltd., who agreed to jointly invest in US tech company 3Com Corp. last year, announced last week that they have withdrawn their application from the Committee on Foreign Investment in the United States (CFIUS) review process. The decision comes at a time when both the United States and China are scrutinizing foreign investments more closely. The 3Com acquisition was the first high-profile CFIUS review since Congress revised...

February 27th, 2008

The US-China Business Council (USCBC) last week held events on China's energy sector policies and business strategies in Shanghai and on energy efficiency and bio-fuels in Washington, DC.

China's energy policy and bureaucracy

In Shanghai, George Ko, general manager of Honeywell Building Solutions, shared a case study that illustrated Honeywell's involvement in China's energy-efficiency market, and Zhang Libin, partner at Baker Botts LLP, provided an overview of China...

February 27th, 2008

China's entry into the World Trade Organization in 2001 brought expectations of a gradual opening in telecom services, but those expectations remain largely unrealized. In 2006, telecom was designated as one of seven key industries essential to national security in which the state should play a dominant role, according to the State Assets Supervision and Administration Commission (SASAC). At the US-China Joint Commission on Commerce and Trade (JCCT) negotiations in 2006, China re-committed...

February 27th, 2008

During her travels to Asia this week, US Secretary of State Condoleezza Rice on February 26 met with PRC President Hu Jintao and Foreign Minister Yang Jiechi in Beijing and discussed issues that ranged from Iran and the Six-Party Talks to the situation in Darfur, Sudan, human rights, and economic reform.

Rice pressed Yang, her PRC counterpart, on resuming the bilateral human rights dialogue that China abandoned in 2004, when Washington pushed the United Nations to condemn Beijing for...

February 20th, 2008

The World Trade Organization (WTO) ruled last week that China's use of tariff policies to restrict imports of foreign auto parts constituted a violation of China's WTO agreements, marking the first time that a case against China has proceeded through a full review by the WTO Dispute Settlement Body (DSB) since China's entry in 2001. Although the ruling is only an interim decision that could be changed and has not yet been made public, in past cases no dispute settlement panel has ever...

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