China Market Intelligence

February 7th, 2007

The Office of the US Trade Representative (USTR) last Friday initiated dispute settlement proceedings against China at the WTO, arguing that PRC government subsidies to domestic and foreign companies violate WTO rules.

The subsidies addressed in the US complaint include income and VAT breaks, exemptions from tariffs and employee benefit payments, and preferential lending terms aimed at encouraging exports and promoting import substitution.

Six of the nine subsidies included in...

January 31st, 2007

Several teams of US government officials are in China this week and next to meet with their PRC counterparts on preparations for the next Strategic Economic Dialogue (SED), which will take place in Washington, DC, in the second half of May. On Wednesday, US Secretary of the Treasury Henry Paulson testified before the Senate Banking Committee on the PRC exchange rate policy and report and the SED.

Staff primarily from the US Department of Commerce (DOC) and Office of the US Trade...

January 31st, 2007

Assistant Secretary of Commerce for Export Administration Christopher Padilla was recently in China to discuss proposed changes to US export controls with PRC officials and US businesses. Meanwhile in Washington, DC, the White House has requested another review of the economic impact of the proposed changes, potentially further delaying the implementation of the rule.

As previously reported in CMI, DOC in July 2006 issued a draft of the rule for comment. USCBC joined other business...

January 31st, 2007

The PRC State Council recently outlined its plans for managing China's largest state-owned enterprises (SOEs) and offered insights into its current strategic economic policy, which includes continued state domination in designated key sectors and the overhaul of the large SOEs directly under the supervision of the State Assets Supervision and Administration Commission (SASAC). This move presents yet another sign of an apparent strengthening protectionist trend in China, following the end of...

January 31st, 2007

The PRC General Administration of Press and Publications (GAPP) recently issued its 11th Five-Year Plan (FYP, 2006-10) that outlines broad guidelines and goals to help shape the development of the media and publishing industry in China. Worth noting in the plan are the intensifying focuses on creating a strong digital publishing industry and combating IPR violations. As is typical of most FYPs, GAPP's plan does not include any concrete implementing measures, and the full impact of these...

January 31st, 2007

USCBC hosted an aviation forum in Beijing on January 29 to discuss reforms of, and improved market access to, China's aviation sector. The forum, sponsored by The Boeing Co., FedEx Corp., Northwest Airlines Corp., Polar Air Cargo, Inc., United Airlines, Inc., and UPS, brought together officials from the Civil Aviation Administration of China (CAAC), General Administration of Customs, Ministry of Communications, National Development and Reform Commission, MOFA, and MOFCOM, to hear views from...

January 24th, 2007

The PRC State Council recently shifted some senior government personnel:

Xiang Zhaolun was named a deputy secretary general of the State Council; Chen Jinyu and You Quan were removed as deputy secretaries general; You Quan replaced Chai Songyue as chair of the State Electricity Regulatory Commission; Jie Zhenghua was named a vice chair of NDRC; Song Lan was named a deputy director of the State Administration of Taxation (SAT); Cui Junhui and Xu Shanda...
January 24th, 2007

China's top financial officials and planners met at a national conference last week and endorsed a range of policies concerning the restructuring of an ailing state bank, better use of ballooning foreign exchange (forex) reserves, and expansion of the bond market that they hope will sustain high growth rates and maintain China's position as the world's fourth-largest economy. The conference, held every five years, was led by Premier Wen Jiabao and included...

January 24th, 2007

The often-overlooked trade and investment in services between China and the United States has expanded dramatically, benefited both economies, and will have an even greater impact in the years to come, according to a report released on Tuesday by the China Business Forum, the educational and research arm of the US-China Business Council (USCBC). The United States is the world's leading service economy and enjoys a growing surplus in its services trade with...

January 24th, 2007

In an apparent step toward improving the protection of intellectual property rights (IPR) in China, the PRC Supreme People's Court (SPC) last week issued a judicial opinion on handling IPR-related cases and laid the ground rules for judicial proceedings for the lower courts in China.

The judicial opinion

Painting with a broad brush, the Judicial Opinion on Comprehensively Reinforcing the...

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