China Market Intelligence

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...

February 21st, 2007

US exports to China in 2006 continued the strong growth seen in recent years, rising 31.7 percent to $55 billion, according to the US Census Bureau and Bureau of Economic Analysis report issued last week. China remains the fourth-largest export market for the United States, but will likely surpass Japan in 2007 to move into third place, just below Canada and Mexico. Despite the boom in exports, the US goods deficit with China jumped to $232.5 billion in 2006, because Chinese imports were up...

February 14th, 2007

US and PRC cabinet officials will meet in Washington, DC, on May 23 and 24 for the second session of the US-China Strategic Economic Dialogue (SED), the US Department of the Treasury announced on Tuesday. The Treasury Department also announced the appointment of Alan Holmer as special envoy for China and the SED. Holmer's selection resurrects a post dedicated to managing the SED that Deborah Lehr briefly filled after its creation. Since her departure, outgoing Undersecretary of the Treasury...

February 14th, 2007

The PRC General Administration of Customs, State Administration of Taxation (SAT), NDRC, and Ministry of Finance (MOF) on January 14 jointly issued a notice that authorizes NDRC, Customs, and SAT to refund targeted import tax and customs duty on imports of essential components and materials used in the manufacture of heavy equipment that cannot be produced domestically. Existing import tax and customs duty refunds for imports of complete or "whole unit" equipment will be canceled, though no...

February 14th, 2007

The PRC State Assets Supervision and Administration Commission (SASAC) and MOF recently issued a notice stipulating that the transfer of state-owned assets must be conducted through professional Property Rights Exchanges (PREs) except under certain, unspecified conditions.

The Notice for the Transfer of State-Owned Assets in Enterprises, which supplements interim measures issued three years ago, states that if the assets in question fall under restricted or prohibited categories, then...

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