China Market Intelligence

May 30th, 2007

The PRC State Council last week approved raising temporary export tariff rates for 142 items and lowering temporary import tariff rates for 209 products. These tariff rate adjustments are aimed at stemming the export of energy- and resource-intensive and polluting products, while encouraging imports to trim China's trade surplus, according to a State Council announcement. These adjustments take effect on June 1.

The export tariff adjustments are largely aimed at China's steel sector....

May 30th, 2007

The PRC State Environmental Protection Administration (SEPA) recently released new measures that call upon government agencies and enterprises to disclose environmental information to the general public. By releasing these measures, SEPA has become the first PRC government agency to follow up on the State Council's Regulations on the Disclosure of Government Information, which direct government agencies to make information on supervision and inspection related to environmental protection...

May 23rd, 2007

The second round of the Strategic Economic Dialogue (SED) concluded today in Washington, DC. The high-level talks headed by US Secretary of the Treasury Henry Paulson and PRC Vice Premier Wu Yi have sought to address major issues regarding the growing trade relations, and tensions, between the two countries. Both sides have stated on numerous occasions that the SED is meant to focus on medium- and long-term issues. Nevertheless, as Paulson explained in his opening statement on Tuesday, "the...

May 23rd, 2007

The PRC National Development and Reform Commission (NDRC) last week released a blueprint for developing China's high-tech sector through 2010. Its broad policy objectives include intensifying efforts to develop "independent innovations," forming domestic technology conglomerates, seeking new markets for China's high-tech products, and cultivating competitive high-tech brands.

Independent innovation and sector targets

Reiterating the need to develop and safeguard...

May 23rd, 2007

The PRC Ministry of Information Industry (MII) announced last week its decision to add wideband code division multiple access (WCDMA) and CDMA2000 as industry standards for third-generation (3G) mobile telecommunications in China. MII made a similar statement in January 2006 when it endorsed time division-synchronous CDMA (TD-SCDMA) as a 3G standard.

In its most recent statement, MII stressed that the promotion of all three standards is part of China's efforts to develop the overall...

May 23rd, 2007
NDRC caps drug prices

NDRC recently announced that it has capped the retail prices of 260 types of pharmaceutical drugs. According to NDRC, the prices of roughly 70 percent of the drugs were lowered by an average of 19 percent, while the rest were either maintained or raised. The drugs affected by the latest NDRC adjustment include those for the respiratory and digestive systems, pain relievers, and anti-inflammatory, antibiotic, and anesthetic drugs.

According to...

May 16th, 2007

Final preparations for the second round of the Strategic Economic Dialogue (SED II) are in full swing, with Washington, DC, preparing for perhaps the largest senior PRC delegation to ever visit the United States.

PRC Vice Premier Wu Yi will lead a delegation of 14 minister-rank and 10 vice-minister-rank officials for discussions on May 22 and 23. US Secretary of the Treasury Henry Paulson will lead the US side in the talks, which will also involve the secretaries of Agriculture,...

May 16th, 2007

The National People's Congress (NPC) received more than 11,000 sets of comments on the draft PRC Employment Promotion Law during its comment submission period, which closed on April 25. According to the NPC, 70 percent of the submissions were made by citizens as opposed to organizations and institutions.

According to a summary on the NPC website, many comments focused on the draft law's antidiscrimination clause, which prohibits discrimination based on ethnicity, race, sex, and other...

May 16th, 2007

In conjunction with the government's efforts to boost China's scientific and technological capabilities and to encourage "independent innovations," 16 ministries and agencies recently publicized a notice that lays out the various incentives the government will develop to attract talented Chinese who have studied abroad--including not only PRC nationals but also Chinese who have obtained foreign citizenship--to return to work in China. According to PRC government statistics, through 2006,...

May 16th, 2007

In recent weeks, US government and media have reported that wheat gluten imported from China and used to manufacture certain pet food products contained melamine, a chemical used in plastics and fertilizers. Melamine can be used to make feeds appear to contain higher protein content and is banned from food products in the United States. Melamine-contaminated pet foods have been the confirmed cause of at least 16 pet deaths in the United States, and the US Food and Drug Administration (FDA)...

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