China Market Intelligence

March 14th, 2007

Wrapping up his third trip to China in seven months, US Secretary of the Treasury Henry Paulson delivered a speech on March 8 at the Shanghai Futures Exchange on the need for China to further reform its capital markets and lift restrictions on foreign financial services firms. Speaking before an audience of PRC financial sector regulators and company representatives, including local management of US financial services firms in China, Paulson emphasized the importance of deep and liquid bond...

March 7th, 2007

Bilateral exchanges continue this month in the run up to the second round of US-China Strategic Economic Dialogue (SED) meetings between US and PRC officials in Washington, DC, May 23-24.

Alan F. Holmer, the new special envoy for China and the SED, traveled to China last week for introductory meetings with PRC Vice Premier Wu Yi, officials from the People's Bank of China, and officials from the China securities, insurance, and banking regulatory commissions. The US-China Business...

March 7th, 2007

More business visas are being issued to Chinese citizens, reports the US Department of State, and they are being issued more quickly despite the rising number of applications. The number of business and tourist visas issued to PRC nationals in fiscal year (FY) 2006 was 16 percent higher than in FY 2005, according to State Department figures released earlier this year. Issuances of all types of visas to PRC nationals climbed 17 percent, even though US posts in China received 17 percent more...

March 7th, 2007

The PRC National Development and Reform Commission (NDRC) recently issued a new Catalogue on the Direction of Overseas Investment for National Industries. The catalogue, NDRC's third since 2004, acts as an overseas investment guideline for Chinese enterprises across multiple sectors--including agriculture, forestry, livestock, and fisheries; natural resources and mining; manufacturing; and services. The PRC government grants Chinese enterprises that comply with the catalogues and that are...

March 7th, 2007

The PRC National Bureau of Statistics released its 2006 "Statistical Report on National Economic and Social Development" last week. The report provides sector-by-sector figures for foreign direct investment (FDI), among other numbers. The report reveals that FDI rose substantially in wholesale and retail sectors, most likely reflecting the implementation of China's World Trade Organization commitments to grant foreign investors distribution rights. The statistics also show a significant jump...

February 28th, 2007

The PRC Standing Committee of the National People's Congress (NPC) released its 2007 legislative agenda this week, which lists 20 draft laws that it plans to review or pass this year, including the draft Corporate Income Tax Law, draft Labor Contract Law (LCL), draft Antimonopoly Law (AML), and draft Social Insurance Law, among others. The NPC aims to pass 10 to 15 draft laws by the end of the year. (The NPC usually reads a draft law at least three times before passing it.)

At its...

February 28th, 2007

The PRC State Council has approved the creation of a leading work group to combat illegal activities in the stock market, according to Chinese press reports. Led by the China Securities Regulatory Commission (CSRC), and including officials from the People's Bank of China, State Administration of Industry and Commerce, and other central-level agencies, the leading group intends to halt risky or illegal speculative activities. Some of these activities include brokerages trading in stocks...

February 28th, 2007
House hearing on China trade

Democrats and Republicans on the trade subcommittee of the House of Representatives' Committee on Ways and Means earlier this month joined industry representatives in criticizing China's intellectual property rights (IPR) protection and industrial subsidies at a hearing focused on China trade.

Opening the hearing, Rep. Sander Levin (R-MI), chair of the subcommittee, guardedly welcomed the Office of the US Trade Representative's (USTR)...

February 21st, 2007

The 2007 Work Plan of the State Intellectual Property Office (SIPO), released on February 1, aims to promote the role of intellectual property (IP) rights in strengthening China's innovative abilities and competitiveness. The work plan focuses on completing and implementing China's national IP rights strategy; wrapping up the third revision of, and starting revisions on the implementing regulations of, the draft PRC Patent Law; and improving the management of IP rights issues across regions...

February 21st, 2007

The PRC Ministry of Commerce (MOFCOM) recently issued a slew of documents to promote the development of domestic brands. This is part of China's larger drive to encourage independent innovation and establish internationally competitive products. It is unclear whether these new government guidance measures will effectively develop Chinese brands in the marketplace or indirectly discriminate against foreign products.

Catalogue of competitive brands

MOFCOM published on...

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