In meetings over the past week, the US-China Business Council (USCBC) met in Beijing and Shanghai with senior representatives from the National People’s Congress Legislative Working Committee, which is responsible for drafting the Foreign Investment Law, to discuss USCBC’s recommendations.
China Market Intelligence
The regulations aim to limit growth of traditional automobile production, encourage NEV production from strong and competitive companies, and weed out weaker producers through M&As and increased competitive pressure.
Some of China’s top officials have started to endorse “competitive neutrality,” a principle under which enterprises of all forms of ownership and sizes are treated equally.
The US-China Business Council held its 38th annual Forecast conference in Washington, DC, on January 31. The program featured comprehensive projections for the Chinese economic environment, US trade policy, the state of US-China relations, and commercial best practices for businesses with operations in China, with a focus on the ongoing trade negotiations.
Trade talks to date have touched on a wide range of issues, but have not narrowed differences on structural issues like IP protection, forced tech transfers, and subsidies to China’s state-owned enterprises.
Further information on the Ministry of Public Security’s 2018 Personal Information Standard may provide clarity for companies on data management measures.
Draft amendments make some progress in strengthening China’s intellectual property rights (IPR) system, including by increasing penalties, extending patent term for designs, and adding patent term restoration for innovative pharmaceuticals.
Most of the changes are consistent with central government reforms of 2018, such as the restructuring of agencies in market supervision, health, insurance, environmental protection, natural resources, and science and technology.
China has loosened market access restrictions over the past couple of years in several industries including financial services and new energy vehicles (NEVs), but other market access barriers remain.