China Market Intelligence

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...

March 28th, 2007

From April to June 2007, PRC residents and foreigners living in China can submit applications for 2008 Beijing Olympic tickets online and through designated Bank of China ticket outlets across the country. (The Beijing Organizing Committee for the Games of the XXIX Olympiad [BOCOG] will announce the exact dates on its website shortly.) Foreigners must have a mailing address in mainland China (Hong Kong, Macao, and Taiwan addresses are excluded) and hold a valid passport with a PRC visa valid...

March 28th, 2007

The US Senate Committee on Finance held hearings on China trade issues Tuesday and Wednesday. The first hearing involved discussions on imposing countervailing duties on Chinese imports and the second hearing primarily dealt with China's exchange rate policy.

Day one

On Tuesday, a common refrain from lawmakers was the complaint that the Bush administration has not used US trade remedy laws to their full extent. Senators Max Baucus (D-MT), chair of the committee, Jeff...

March 28th, 2007

USCBC President John Frisbie attended the China Development Forum on March 17-19 in Beijing, at the invitation of the PRC State Council's Development Research Center. The forum is held annually after the conclusion of the full session of the PRC National People's Congress (NPC) and brings together top PRC officials, business leaders, and economists with overseas counterparts for discussions and recommendations on China's economic policy.

The 2007 forum's theme was "China: Toward New...

March 28th, 2007

The Chinese Communist Party (CCP) Central Committee announced a series of personnel changes within the CCP last week.

Xi Jinping was appointed party secretary of Shanghai. Prior to his new position, Xi served in Fujian, Hebei, Shaanxi, and Zhejiang. He was party secretary of Fuzhou, Fujian, in 1993, Fujian deputy party secretary in 1995, vice governor in 1999, and governor in 2000. In 2002, Xi moved to Zhejiang and became Zhejiang party secretary and in 2003, chair of the Standing...

March 21st, 2007

The full PRC National People's Congress (NPC) concluded its annual session March 16 after adopting the Property Rights Law, which grants equal protection to public and private property, and the Enterprise Income Tax Law, which unifies the effective tax rates for foreign-invested and domestic enterprises.

The Property Rights Law Impetus for reform

PRC policymakers had discussed various property law drafts for 14 years. In that time two developments made passing such a...

March 21st, 2007

Foreign and PRC residents of China who made more than RMB 120,000 ($15,489) in 2006 must complete a new individual income tax return by March 31, according to PRC State Administration of Taxation (SAT) regulations issued last November. SAT's Trial Regulations on Self-Reporting of Individual Income Tax are China's first regulations to require individuals to report their incomes annually.

Currently, enterprises and work units withhold individual income tax and pay it to tax authorities...

March 21st, 2007

The industrial alliance that supports China's homegrown standard for wireless local area networks (WLAN) recently announced that WLAN Authentication and Privacy Infrastructure (WAPI) products will enter China's electronics market in 2007. Qin Zhiqiang, deputy secretary general of the WAPI Industrial Alliance, stated that it is the alliance's duty to promote the WAPI standard for domestic use and to make WAPI the Chinese market standard. (China declared WAPI a national standard in May 2003....

March 21st, 2007

China will set up a state investment corporation to earn better returns on its massive foreign exchange (forex) reserves, Finance Minister Jin Renqing announced at a press conference held during the NPC session. Though Jin did not say how much of the reserves the company would manage, analysts estimate the amount could be between $200 billion to $300 billion. The company would be similar to Singapore's Temasek Holdings Pte Ltd., which reported returns of 24 percent last year and 18 percent...

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