China Market Intelligence

July 18th, 2007
New insurance licensing measures

The China Insurance Regulatory Commission (CIRC) last month released new licensing measures for insurance-related companies operating in China. Companies subject to the regulations include insurance shareholding companies that provide insurance services, insurance group companies, insurance companies and their branches, insurance asset management companies and their branches, insurance agent organizations and their branches, and insurance...

July 18th, 2007

The PRC National Development and Reform Commission (NDRC) last week released the 2007 Industrial Standards Plan, which covers a total of 2,450 industrial standards, including 1,184 new and 1,266 revised standards. Standards promulgated by NDRC are different from those issued by the Standardization Administration of China (SAC). NDRC oversees industrial standards, while SAC is in charge of national standards, which can be directly enforced by PRC authorities. Industrial standards, on the...

July 11th, 2007
AQSIQ announces results of product safety survey

Amid the recent barrage of news reports calling attention to unsafe products made in China, the PRC General Administration of Quality Supervision, Inspection, and Quarantine (AQSIQ) on July 4 announced that 80.9 percent of the products it inspected during the first half of 2007 met quality standards--meaning that about one-fifth of the products failed the inspection.

The results of the nationwide inspection--which...

July 11th, 2007

A first draft of the PRC Personal Information Protection Act, China's first effort to formulate a comprehensive personal information law, is ready for review by the National People's Congress (NPC), according to recent news reports. Chinese experts believe it may take several years, however, to complete the final draft.

Although the draft law has yet to be released, it is based on an expert proposal submitted by information technology and legal experts in the State Council Information...

July 11th, 2007

The Standing Committee of the NPC in late June read the draft PRC Antimonopoly and Employment Promotion laws for a second time during its 28th session, though the drafts were not publicly released. Draft laws usually require three readings before their final passage.

Antimonopoly Law (AML)

The latest AML draft does not appear to address foreign companies' concerns, such as unclear definitions of key terms such as "dominance," "market share," and "fair price," and...

July 11th, 2007

The PRC State Council recently appointed several cabinet and other high-ranking officials.

Chen Zhu was appointed minister of Health, becoming only the second non-communist named to the PRC cabinet since the 1970s. He replaced Gao Qiang, who was appointed Chinese Communist Party (CCP) secretary of the Ministry of Health; Zhang Hongli, former assistant minister of Finance, was appointed deputy minister of Finance; Yang Mingsheng, former president of the Agricultural Bank of China (ABC),...
June 27th, 2007

The PRC State Administration of Foreign Exchange recently published China's Net International Investment Position (NIIP) data for 2006. According to the figures, China's 2006 NIIP was a positive $662.1 billion, up 56.7 percent from 2005. In comparison, the US NIIP in 2005 was a negative $2.5 trillion, according to the US Department of the Treasury. A positive NIIP indicates that the value of foreign assets held by domestic residents exceeds the value of domestic assets held by foreign...

June 27th, 2007

The US Embassy in Beijing recently formed a sub-unit within its Trade and Investment Policy Unit to track developments in major sectors of the services industry and to analyze PRC government policies that may cut across multiple service sectors. The embassy is soliciting feedback from US companies on expanding market access opportunities for US service providers. Interested companies may contact Geoff Siebengartner (T: 86-10-6532-3831 x 6068) at the embassy for more information and to...

June 27th, 2007

Following the release of plans to address energy development and climate change, the State Council recently issued a related plan to reduce energy consumption and cut the emission of pollutants. These recent moves seem to suggest that China is intent on redoubling its efforts to tackle energy inefficiency and environmental pollution and to generate more sustainable economic growth.

Goals

While reiterating China's 11th Five-Year Plan (FYP, 2006-10) goals of reducing...

June 27th, 2007

The China Securities Regulatory Commission (CSRC) recently released new measures that expand China's program for qualified domestic institutional investors (QDII). Under the Trial Measures for QDII Investment in Overseas Securities and the accompanying notice, both of which take effect July 5, domestic securities brokerages and fund management companies may apply to pool RMB and foreign-currency capital to invest in overseas securities, including in Hong Kong and Macao.

According to...

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