China Market Intelligence

April 11th, 2007

To boost science and technology innovation in China, the State Council Legislative Affairs Office recently issued a revised draft of the PRC Science and Technology Law and is soliciting public comments until April 20. Unlike the original 1993 law, which the new law will replace, the draft lists incentives to develop China's science and technology sector and emphasizes the need for cooperation among domestic enterprises, international organizations, and FIEs. The draft also expands the scope...

April 11th, 2007
2007 Intellectual Property Rights (IPR) Protection Action Plan

The PRC National IPR Working Group, an interagency body under the State Council, released China's 2007 IPR Protection Action Plan last week. According to the plan, the PRC government will continue to revise existing IPR laws, regulations, and judicial interpretations; undertake IPR campaigns; and improve judicial enforcement of IPR.

The 2007 plan states that China will build on many measures from the 2006...

April 11th, 2007

The PRC Supreme People's Court and the Supreme People's Procuratorate jointly issued a new judicial interpretation of China's IPR laws, which took effect on April 5. The new interpretation replaces parts of the December 2004 IPR judicial interpretation. Although it reduces the numerical threshold for determining when copyright violations can be considered criminal, it does not alter the monetary value thresholds. This limits the significance of the interpretation.

The new...

April 11th, 2007

The United States on Tuesday launched two WTO challenges of PRC laws that USTR officials say allow for widespread infringement of IPR.

This marks the third major enforcement action initiated by US trade officials in as many months. In February, USTR launched a WTO case challenging alleged subsidies to Chinese exporters. In March, the US Department of Commerce announced it would apply countervailing duty laws to China.

In a press release Tuesday, a MOFCOM spokesperson...

April 4th, 2007

As part of its effort to reduce the Chinese economy's reliance on the manufacturing sector, the PRC State Council last week issued a new opinion that broadly seeks to promote development of the services sector; the opinion includes comments on the role of foreign investment. In accordance with China's 11th Five-Year Plan (FYP, 2006-10), the opinion sets a services trade target of $400 billion by 2010 (the total was $157.1 billion in 2005, according to reports) and aims to raise the...

April 4th, 2007

US countervailing duty (CVD) laws will now apply to China, the US Department of Commerce (DOC) announced last Friday.

The decision, which reverses a policy of more than two decades not to impose CVDs on imports from nonmarket economies, came as part of an investigation into whether DOC should place CVDs on imports of coated free sheet paper from China. Last Friday, DOC announced a preliminary decision to impose duties of 10 to 20 percent.

The PRC Ministry of Commerce (MOFCOM)...

April 4th, 2007

The Institute of Public and Environmental Affairs (IPE), an environmental nongovernmental organization (NGO) in Beijing, recently updated a list of companies that allegedly failed to comply with PRC regulations on water pollution from 2004 to 2006. Released shortly before World Water Day, the list contains more than 5,000 enterprises across China. Roughly 70 multinational corporations or foreign-invested joint ventures are on the list (less than 2 percent of the total), including about a...

April 4th, 2007

The PRC State Council recently approved healthcare sector development guidelines for China's 11th FYP period. Priorities in the guidelines, yet to be publicized, include regulating pharmaceutical prices, establishing a universal basic healthcare system, and expanding the rural healthcare cooperative system, according to PRC press reports. In addition, Premier Wen Jiabao recently vowed to double government spending on healthcare this year. (China currently spends only about 5 percent of its...

April 4th, 2007

MOFCOM recently issued a list of China's top 100 retail chains based on their 2006 sales figures. China's top 100 retailers accounted for a total of RMB 855.2 billion ($110.6 billion) in sales through 69,100 stores. Gome Group, with 820 stores, leads the way among all retailers in China with RMB 86.9 billion ($11.2 billion) in sales, up 74 percent over 2005. In 2006, Gome also underwent massive expansion and increased its number of outlets by 92 percent.

Top 10 Retailers by Sales, 2006...
March 28th, 2007

Echoing foreign investment directives in the National Development and Reform Commission (NDRC) and Ministry of Commerce (MOFCOM) 11th Five-Year Plans (FYPs, 2006-10), MOFCOM recently issued guidelines that prioritize improving the "quality" of foreign investment and using it to help balance regional development, creating a stronger supervision system over foreign investment, and fostering a more favorable environment for foreign investment. Similar to previous directives, the 2007...

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