China Market Intelligence

August 22nd, 2007

The US-China Business Council (USCBC) is stepping up its effort to counter potentially harmful legislation that Congress may consider after it reconvenes in September.

Separate legislative tracks are developing in the US House of Representatives and Senate. As previously reported in the CMI and Washington Update, the Senate debate will center on currency and competing measures that would revise the content and approach of the US Department of Treasury's semiannual exchange rate report...

August 22nd, 2007
China's first white paper on food safety

The PRC State Council Information Office last week issued a comprehensive white paper, "The Quality and Safety of Food in China," that outlines China's food industry development, addresses food quality issues, and details PRC government efforts to improve the country's domestic food supervision system and the safety of food imports and exports. The first of its kind on China's food safety, the white paper comes amid escalating US...

August 22nd, 2007
Corporate bonds

The China Securities Regulatory Commission (CSRC) recently published trial rules that significantly loosen restrictions on the types of companies allowed to issue corporate bonds—a step forward in China's ongoing effort to create viable alternative sources of funding for its companies. Current regulations permit only a few large state-owned enterprises to issue corporate bonds. The new rules authorize all eligible companies to issue bonds without special...

August 22nd, 2007

To facilitate the development of China's venture capital (VC) market, the PRC National Development and Reform Commission (NDRC) and Ministry of Finance (MOF) last week jointly issued Trial Guidelines on Applying for VC Investment Projects in High-Tech Research and Development (R&D), which detail encouraged technologies that investments should target. NDRC highlighted China's VC market as a focus area in its 11th Five-Year Plan (FYP, 2006-10) on the Development of High-Tech Industry,...

August 15th, 2007

The China Insurance Regulatory Commission (CIRC) in recent weeks released draft rules for comment that could limit foreign investment in domestic insurance companies and provisional measures on managing capital guarantee deposits.

Foreign ownership limitations in domestic firms

Domestic insurance firms are firms in which foreign investors have a stake of less than 25 percent, according to the new definition in CIRC's draft Regulations for the Management of Share...

August 15th, 2007

The PRC State Food and Drug Administration (SFDA) recently released its Second Half 2007 National Medical Equipment Special Administrative Work Plan, one of several actions that the PRC government has taken to ensure the safety of medical equipment used in China and improve procurement efficiency.

The plan calls for closer examination of information provided in registration applications across the three categories of medical equipment, including equipment currently undergoing the...

August 15th, 2007

Food and product safety remains a major concern on both sides of the Pacific, and discussions on how to address these issues continue in Beijing and Washington.On the heels of recent action, the PRC and US governments have been building their efforts to cooperate on these matters.

Groups formed to focus on problems

President George W. Bush on July 18 created the Import Safety Working Group, a special panel focusing on the safety of imported products, headed by...

August 8th, 2007

US-China Business Council (USCBC) President John Frisbie visited Beijing, Shanghai, and Hong Kong during the last two weeks of July to meet with senior PRC government officials and advocate USCBC positions. Frisbie also met with member company representatives to learn about their key operating and policy concerns.

JCCT and SED

In Beijing, Frisbie met with vice- and assistant-minister level officials at the ministries of Commerce, Finance, and Foreign Affairs, which...

August 8th, 2007

US Treasury Secretary Henry Paulson last week visited China for the fourth time since assuming his current office to work on the Strategic Economic Dialogue (SED) framework between the United States and China. At Paulson's private meetings with Vice Premier Wu Yi and President Hu Jintao, the principals reportedly discussed the role of the SED, developments in the US Congress, and the core SED topics of currency and financial reforms, energy, and the environment, as well as a new shared...

August 8th, 2007

Since last week's CMI, the US Congress has taken more action on China-related issues and legislation before its official recess began on August 6.

First, the Senate Banking Committee on August 1 marked up S.1677, and the currency bill passed in committee with a vote of 17-4, a sizeable majority. This means that two competing currency bills—the other is from the Senate Finance Committee—have passed through their respective committees. Senate Majority Leader Harry Reid (D-NV) has said...

Pages