China Market Intelligence

January 23rd, 2008

To meet part of its 2001 accession to the World Trade Organization (WTO) and 2006 US-China Joint Commission on Commerce and Trade commitments, China submitted its initial offer for joining the Government Procurement Agreement (GPA) in late December 2007. The GPA proposal is confidential, which means US officials are not permitted to discuss its details, but news reports indicate that Beijing's initial offer is modest in scope and sets a 15-year timetable for full implementation. US officials...

January 23rd, 2008

As 2008 gets under way, several year-end 2007 numbers will emerge and trigger more vociferous calls to "deal with China." First in line are a larger bilateral trade deficit and the pace of renminbi (RMB) appreciation, both certain to receive sustained attention from the US Congress and White House in the new year.

The trade deficit

Full-year figures for the 2007 US trade balance will be released in mid-February and will generate more calls to "do something" about...

January 23rd, 2008

The combined effects of the Beijing Olympics, looming inflationary pressures, and a potential US recession could make 2008 a "turning point" in China's economic growth, similar to those the country experienced during the 1997 Asian Financial Crisis and after the 2001 World Trade Organization entry, said Andy Xie, a leading Asia economist and regular Caijing Magazine contributor.

Offering his prognosis at a US-China Business Council luncheon in Shanghai last Thursday, Xie identified...

January 23rd, 2008

China's Internet users swelled to 210 million in 2007, second only to the United States' roughly 215 million users, according to year-end figures from the China Internet Network Information Center (CNNIC). The country's Internet penetration rate--the number of Internet users as a percentage of total population--still lags the world average of 19 percent but has more than doubled in the last three years. Guangdong leads China's regions with 33.4 million Internet users. Beijing and Shanghai...

January 16th, 2008

Medical and healthcare expenses are top concerns for the Chinese public and policymakers, according to a recent survey of Chinese families and the newly published 2008 Blue Book of China's Society. Published by the PRC National Bureau of Statistics (NBS) and Chinese Academy of Social Sciences (CASS), respectively, these reports are intended to inform the central government of the key social trends and factors that it should consider when crafting domestic policy in the coming year.

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January 16th, 2008

Following recent personnel changes, China's cabinet, implemented another round of bureaucratic reshuffling. More personnel changes at the ministerial level are expected in the near future.

PRC Personnel Changes (in alphabetical order) Source: State Council Name New position Former position Li Jiaxiang Vice director and acting director, General Administration of Civil Aviation of China (CAAC) Chair, Air China Ltd. Li Jingtian Vice president, Central School of the Chinese Communist Party (...
January 16th, 2008

The US-China Business Council (USCBC) recently released a compilation of outcomes from the three rounds of the Strategic Economic Dialogue (SED) and a series of population maps that compare China's urban population patterns to those of the United States.

SED outcomes chart
The SED was established by President George W. Bush and President Hu Jintao in September 2006 as a high-level, focused framework to address long-term structural issues and mutual priorities and concerns between...

January 16th, 2008

Patent applications and approvals in China reached new highs in 2007, which may indicate an increasing public awareness of intellectual property (IP) rights--long a contentious issue in the US-China trade relationship. New statistics from the PRC State Intellectual Property Office (SIPO) show that more than 694,000 patent applications were filed and more than 351,000 approved, up 21.1 percent and 31.3 percent, respectively, over 2006.

Most of this growth can be attributed to domestic...

January 9th, 2008

The PRC State Council in late December 2007 released China's 2008 Tariff Implementation Measures and adjusted the average tariff level, both of which took effect January 1, 2008.

According to the State Council and the Ministry of Finance, China's average tariff rate will remain at 9.8 percent, the same level as in 2007. In addition, the average tariff rate for agricultural products stands at 15.2 percent; for industrial products, the average rate dropped a mere .03 percentage point to...

January 9th, 2008

The China Securities Regulatory Commission (CSRC) at the end of 2007 released the revised Rules on Foreign Investment in Securities Companies and Provisional Measures for Establishing Securities Company Subsidiaries. Both regulations, which took effect January 1, aim to align current procedures and requirements in the securities industry with new laws. They also lift some restrictions on foreign investors but retain others.

Revised Rules on Foreign Investment in Securities...

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