China Market Intelligence

November 28th, 2007

The US-China Business Council (USCBC) is continuing its advocacy work with the PRC and US governments in the run up to the Joint Commission on Commerce and Trade (JCCT) and US-China Strategic Economic Dialogue (SED) meetings in Beijing in December, while also providing membership with access to key officials in both countries.

The JCCT will take place on Tuesday, December 11, in Beijing. Commerce Secretary Carlos M. Gutierrez, US Trade Representative Susan C. Schwab, and possibly...

November 28th, 2007

US-China Business Council (USCBC) Vice President of China Operations Bob Poole recently met with officials responsible for services industries in the PRC National Development and Reform Commission's (NDRC) Industrial Policies Department in Beijing to advocate services sector policies on behalf of member companies. Poole provided NDRC officials with Chinese copies of the Prospects for US-China Services Trade and Investment, a report commissioned by the China Business Forum, USCBC's...

November 28th, 2007

The US International Trade Commission (ITC) last week ended the first case that would have imposed countervailing duties (CVDs) on Chinese goods. Six more CVD cases against China remain, however, meaning that the United States could still reverse a longstanding policy and apply CVDs to a nonmarket economy.

Background

Finding that certain types of coated free sheet (glossy) paper were subsidized and sold in the United States at less than fair value, the US Department...

November 28th, 2007

China launched the state-owned investment company, China Investment Corp. Ltd. (CIC), on September 29, to strategically invest some of the government's foreign exchange (forex) reserves. At $1.4 trillion, China has the largest amount of forex reserves in the world. According to the Wall Street Journal, CIC's managers may invest about a third of its $200 billion in global financial markets. In May, before CIC was officially launched, the corporation made its first overseas investment by...

November 21st, 2007

Since the PRC government's November 7 release of the Catalogue Guiding Foreign Investment in Industry: 2007 Revision, many US companies have been analyzing whether the catalogue complies with existing trade and investment agreements that China has made, most notably its World Trade Organization (WTO) accession documents.

The central government's use of a catalogue to detail areas open to foreign investment does not inherently violate WTO commitments. Investment is only covered by the...

November 21st, 2007

To standardize recruiting practices and prevent discriminatory hiring practices, the PRC Ministry of Labor and Social Security (MOLSS) issued the Employment Service and Management Regulations on November 5. Building on provisions in the PRC Employment Promotion Law, which the National People's Congress passed on August 30, the new regulations clarify rules relevant to company human resources procedures and the supervisory work of local labor bureaus.

When using employment service...

November 21st, 2007

The PRC Ministry of Information Industry's (MII) Center for Software and Integrated Circuit Promotion (CSIP) plans to open a branch in Chongqing. The plan follows moves recently made by PRC and foreign businesses to expand their information technology (IT) and outsourcing operations beyond traditional high-tech centers in Shanghai, Shenzhen, and Beijing. CSIP's presence in Chongqing is an indicator of continued government emphasis on developing high value-added goods and services in China's...

November 21st, 2007

The PRC Ministry of Commerce and National Bureau of Statistics recently released China's outbound foreign direct investment (FDI) figures for 2006. Chinese net outbound FDI flows reached $21.2 billion in 2006, up nearly 73 percent over 2005. This figure includes $17.6 billion that was invested in non-financial entities. China's net outbound FDI stock reached $90.6 billion at the end of 2006, with outbound FDI stock in non-financial entities accounting for $75.0 billion, or 82.8 percent. (...

November 14th, 2007

China released its long-awaited Catalogue Guiding Foreign Investment in Industry: 2007 Revision on November 7. The revisions present a mixed bag for investors--some industry sectors will see more support and openness, while other sectors will find ownership or other restrictions on new investments. The PRC National Development and Reform Commission (NDRC) and Ministry of Commerce (MOFCOM) jointly issued the catalogue, which is not open for comment and takes effect December 1. The catalogue...

November 14th, 2007

Long sensitive to the potential economic and security concerns caused by limited supplies and volatile prices in the global fossil fuel market, and increasingly concerned about the pollution of coal-driven electricity generation at home, China is moving to diversify its energy sources. In addition to nuclear power, renewable energy--composed of hydro, wind, biomass, geothermal, and solar energy--is set to play a much larger role in China's future energy plans. The PRC National Development...

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