China Market Intelligence

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 24th, 2007

At the conclusion of the week-long 17th Chinese Communist Party (CCP) Congress on October 22, four new officials were inducted into the nine-member Politburo Standing Committee, China's most powerful governing body. As expected, President Hu Jintao retained his title of CCP general secretary and will lead the CCP and the PRC government for the next five years.

Hu's concept of "Scientific Outlook on Development" was enshrined in the CCP constitution alongside "Mao Zedong Thought," "...

October 24th, 2007

As the January 1 implementation date of the PRC Enterprise Income Tax Law approaches, major accounting firms have begun discussions on the law's draft implementing regulations with the Ministry of Finance (MOF) and State Administration of Taxation (SAT). The implementing regulations, which are expected to be released in early November, reportedly contain a number of provisions that will directly impact the operations and tax planning of foreign-invested enterprises (FIEs) in China.

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October 24th, 2007
Food and product safety legislation

Food and product safety has remained a prominent focus of the US Congress over the past few weeks and has been the subject of several hearings in September and October. Several pieces of food and product safety-related legislation appear to be gaining momentum, and at least one representative who works on China-related issues is convinced that there is plenty of support for the bills to pass.

The House and Senate have created bills...

October 24th, 2007

China's expanding global trade surplus and resulting foreign currency inflows are putting pressure on the PRC government to allow the renminbi (RMB) to rise more quickly against the dollar and euro. China announced a global trade surplus through the third quarter of $185.6 billion, already exceeding the $177.5 billion surplus recorded for all of 2006. Exports totaled $878.6 billion through September 2007, up 27.1 over the same period in 2006, and imports totaled $692.6 billion, up 19.1...

October 17th, 2007

More than 2,200 delegates convened in Beijing on October 15 for the national Congress of the Chinese Communist Party (CCP), one of the most important events in PRC politics. Every five years, the CCP meets to elevate new leaders and members to the highest CCP organs, specifically the party's Central Committee, Politburo, and Politburo Standing Committee, and to announce the retirement of others. The congress is also the occasion for policy speeches that lay out the broad outlines of the...

October 17th, 2007

Although Chinese Communist Party (CCP) leadership changes will not be announced until the CCP Congress ends on Sunday, October 21, the PRC State Council recently made several government personnel appointments. The following officials were appointed:

Appointments, October 2007 Note: In some cases, it is unclear whether the officials will be leaving their former position. NA = not available Name New position Former Position Lou Jiwei Board chair, China Investment Corp. (CIC) Deputy...
October 17th, 2007
US-China exchanges on environmental issues

US Environmental Protection Agency (EPA) officials in late September met with their PRC counterparts to advance cooperation and dialogue on a host of environmental issues. EPA Administrator Stephen Johnson and National Development and Reform Commission (NDRC) Vice Minister Xie Zhenhua held substantive discussions on the sidelines of the Major Economies Meeting on Energy Security and Climate Change, which took place on September 27...

October 17th, 2007

China's total 2006 research and development (R&D) expenditures jumped RMB 55.3 billion ($7.4 billion) to reach RMB 300.3 billion ($39.9 billion), up nearly 23 percent over 2005, according to the PRC National Bureau of Statistics (NBS). R&D spending by all enterprises hit RMB 214.5 billion ($28.5 billion), up 18.8 percent; government research institutions hit RMB 56.7 billion ($7.5 billion), up 10.6 percent; and universities reached RMB 27.7 billion ($3.7 billion), up 14.2 percent....

October 10th, 2007

With roughly 300 days left until the 2008 summer Olympics begin in Beijing, potential spectators are likely to face challenges related to ticketing, hotel and flight booking, and visa processing. The US-China Business Council (USCBC) has compiled the following information to help members planning to attend the games.

Purchasing Olympic tickets

According to USCBC sources, 49 percent of the 7 million tickets being sold for Olympic events are tentatively reserved for...

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