China Market Intelligence

November 14th, 2007
US, PRC agencies draft agreements on food, pharmaceutical safety

US and PRC agencies completed initial negotiations on food and feed safety and on pharmaceuticals and medical devices in Washington, DC, on November 1-2. Though both agreements must still undergo a clearing process that could slightly alter their language and content, US officials expect the main agreements to be completed and signed before the third round of the Strategic Economic Dialogue, which will be held...

November 7th, 2007

US and PRC government officials are in the midst of preparing for the Joint Commission on Commerce and Trade (JCCT) and Strategic Economic Dialogue (SED) meetings that will occur the week of December 10 in Beijing. The SED will focus on broad economic and trade issues and the JCCT will address industry-specific items.

In recent weeks, the US-China Business Council (USCBC) has had several opportunities to discuss the upcoming meetings with US and PRC officials and to share USCBC member...

November 7th, 2007

The 30th session of the 10th National People's Congress (NPC) Standing Committee concluded on October 28 with the adoption of several significant amendments to environmental and civil procedure laws and the passage of the new Urban and Rural Planning Law. The standing committee also adopted draft amendments to the Revised Lawyers Law and discussed, but did not pass, the draft Labor Dispute Arbitration Law. In a special session led by NPC Chair Wu Bangguo, the standing committee ratified an...

November 7th, 2007

Legislation that took effect last month and a controversial acquisition of a US network technology company are once again raising the profile of PRC investment in the United States. Just days after the Foreign Investment and National Security Act of 2007 took effect, several members of Congress called for the Committee on Foreign Investment in the United States (CFIUS) to block the potential takeover of Marlborough, MA-based 3Com Corp. by Boston-based Bain Capital LLC and Shenzhen Huawei...

November 7th, 2007

The US-China Business Council (USCBC) has created a website, the US-China Trade Toolkit, for USCBC members to use in their lobbying and outreach efforts to support a balanced commercial relationship with China. Though a portion of this material is available elsewhere on the USCBC website and is available to the public, some of the material is confidential and for USCBC members only. The toolkit website includes the following sections:

General trade information and analysis...
November 7th, 2007

Despite a September pledge to freeze gasoline prices to curb inflation, on October 31 the PRC National Development and Reform Commission (NDRC) issued the Notice on the Adjustment of Refined Oil Prices, which raised oil prices by about 10 percent. In addition, the PRC Ministry of Commerce (MOFCOM) last week announced higher 2008 oil import quotas for non-state-owned enterprises to meet increasing demand. Recent oil shortages and current record prices will likely affect the logistics and...

October 31st, 2007

Applications for US branches initiated this year by the China Merchants Bank Co. Ltd. and Industrial and Commercial Bank of China (ICBC) marked the first time in 16 years that a PRC bank has applied for a US branch. Experts believe that the dearth of applications reflects an overall lack of confidence in meeting US statutory requirements and gaining approval. Key PRC negotiators—including those involved in the Strategic Economic Dialogue—are pressuring the US government to approve Chinese...

October 31st, 2007

Hundreds of PRC government officials, financiers, journalists, and others tackled the issue of financial reform at the Second Annual China Finance Mayors Conference & China Financial Ecological Cities Development Conference in Langfang, Hebei, on October 28-29. In their speeches, Beijing officials all referenced President Hu Jintao's comments about financial reform from the recently concluded 17th Chinese Communist Party (CCP) Congress.

In particular, speakers addressed making the...

October 31st, 2007

China made more personnel changes in the Chinese Communist Party (CCP) and the government to replace Xi Jinping, Li Keqiang, He Guoqiang, and Zhou Yongkang, all of whom were elevated to the Politburo Standing Committee last week.

The National People's Congress Standing Committee approved Meng Jianzhu, 60, as minister of Public Security, replacing Zhou Yongkang. Meng was previously CCP secretary of Jiangxi. Yu Zhengsheng, 62, was named Shanghai CCP secretary, replacing Xi Jinping. Yu was...
October 31st, 2007

The two big stories of China's economy in the third quarter were the economic and political impacts of the growing trade surplus and the resulting efforts to stem the largely unchecked growth of liquidity in the banking system. On the economic front, the surplus is undermining monetary policy, putting pressure on the renminbi (RMB), and raising risks of inflation. On the political front, the European Union has called for talks in late November on the EU-China trade deficit and the value of...

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