China Market Intelligence

September 26th, 2007

The US-China Business Council (USCBC) on Tuesday released an analysis of China's financial sector that recommends further market openings for foreign providers of banking, securities, insurance, and other financial services. USCBC has long held that financial modernization is the most important of China's unfinished economic reforms. The report states that financial sector reforms are critical not only to sustained economic growth in China, but also to addressing core issues in the bilateral...

September 19th, 2007

The passage of China's Antimonopoly Law (AML) on August 30 completed a 13-year drafting process—one of China's longest—and put in place another element of a market economy framework by establishing guidelines for monopolies and anti-competitive behavior.

Context of the law

The AML drafting process involved input from US, European, and Asian antitrust agencies, overseas legal practitioners, and foreign and domestic companies. The final draft of the law, discussed in...

September 19th, 2007

The US-China Business Council (USCBC) yesterday released an overview of the development of and potential impacts on foreign companies of China's recently enacted Labor Contract Law.

Executive summary The PRC Labor Contract Law (LCL), which will take effect January 1, 2008, is one of numerous policy measures that are emerging to address the causes of rising labor disputes in China. The new LCL is the product of a lengthy internal debate within the Chinese Communist Party regarding the...
September 19th, 2007

China and the United States took steps this week, both jointly and separately, to address food and product safety, an issue important to policymakers and consumers in both countries. Though many US companies welcome these developments, they remain concerned that some proposed measures to increase administrative scrutiny may unnecessarily disrupt business operations without enhancing quality and safety.

US and China hold joint summit on product safety

The US Consumer...

September 19th, 2007

The Standing Committee of the National People's Congress (NPC) recently reviewed two environmental laws: the draft Circular Economy Law (CEL) and a draft revision to the Water Pollution Prevention Law, last amended in 1996.

Draft Circular Economy Law reviewed for the first time

Inspired by German and Japanese recycling economy laws, the draft CEL aims to reduce production- and consumption-related waste significantly by promoting recycling and the reuse of materials....

September 19th, 2007

As our Washington-based membership knows, USCBC has been coordinating a coalition of associations and companies on legislative issues before Congress. Two weeks ago, the group rolled out its plans for the fall to almost 100 attendees from companies and associations. As part of the initiative, USCBC is organizing a letter from the business community to members of Congress, a white paper characterizing positive ways to move the trading relationship with China forward, and talking points for...

September 12th, 2007
NPC passes Employment Promotion Law

The National People's Congress Standing Committee on August 30 passed the Employment Promotion Law, which will take effect January 1, 2008. The law largely focuses on the responsibilities of local governments to promote employment, but major provisions also deal with discrimination.

The law bans employment discrimination based on "ethnicity, race, gender, religious belief, etc.," but does not clarify what other categories may be...

September 12th, 2007

The PRC Ministry of Commerce hosted the China International Fair for Investment and Trade (CIFIT) in Xiamen, Fujian, from September 8 to 11. Organized around the themes "Introducing FDI" and "Going Global," the fair drew representatives from 415 organizations from 92 countries, and more than 10,000 foreign business, government, and trade association representatives attended the fair. Vice Premier Wu Yi served as lead host of CIFIT for the seventh consecutive year.

The International...

September 12th, 2007

The PRC General Administration of Customs recently issued measures that govern the management and functions of several PRC special bonded zones—areas that are physically within PRC territory but are considered to be outside of PRC Customs jurisdiction and thus operate under different guidelines. (These areas include free-trade zones, export-processing zones, bonded port areas, and bonded logistics parks and centers.) These new measures help clarify the operation of recently introduced...

September 12th, 2007

The US and PRC presidents last week met in private before taking part in a two-day Asia-Pacific Economic Cooperation (APEC) summit in Sydney, Australia. Characterizing his conversation with President Hu Jintao as "constructive and cordial," President George W. Bush appeared satisfied with the state of US-China relations, according to both foreign and PRC media. Their 90-minute discussion ranged from product safety and climate change to Taiwan and the situation in Darfur, Sudan. The meeting...

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