China Market Intelligence

February 14th, 2007

The PRC Ministry of Information Industry (MII) last week released its 2006 report on the growth of China's information industry. The report shows that the telecom sector constitutes the largest segment of the overall industry, expanding 26.1 percent over 2005 to RMB 1.5 trillion ($188.1 billion) (see Table 1). Over the last year, central China experienced the fastest revenue growth in the telecom sector (see Table 2).

Mobile data services also grew rapidly in 2006, accounting for 21.6...

February 14th, 2007

USCBC held its Forecast 2007 reception and conference last week for member companies with guests from the US government, PRC embassy, and academia. More than one-third of USCBC's member companies were represented; nearly half came from outside of Washington.

The event began with an evening reception on February 7, which featured remarks by Rep. Joseph Crowley (D-NY) and Mark Kirk (R-IL), PRC Embassy Deputy Chief of Mission Zheng Zeguang, and Assistant USTR Tim Stratford. Rep. Rick...

February 7th, 2007

The PRC Ministry of Labor and Social Security (MLSS) issued on January 29 an outline of its 2007 work plan, which covers broad goals for employment stability, social security, labor relations, and the rights of rural workers. The plan calls on the PRC government to step up internal controls for supervision of the social security fund and to speed up legislative work on a range of labor issues. The work plan is an extension of previous policy statements that deal with China's uneven income...

February 7th, 2007

The PRC National Development and Reform Commission (NDRC) last week released its macroeconomic policy outlook for 2007, which emphasizes the reform of China's financial system, foreign investment and trade, balanced development among regions, better environmental and energy standards, and continued land use reform. Though many of the policies are primarily aimed at domestic companies, some could affect foreign companies and investors.

Financial market reform

In 2006...

February 7th, 2007

The PRC Ministry of Science and Technology, State Intellectual Property Office, MOFCOM, and NDRC jointly released the Development Guide of the Current High-Tech Industrialization Priority Areas, which lists 130 items across 9 sectors as focuses of China's innovation drive in 2007. The items listed range widely, from birth control pills and solar energy panels to satellites and deep-sea exploration equipment (see Table).

Three such guides have been previously issued--in 1999, 2001, and...

February 7th, 2007

The PRC Supreme People's Court recently released a judicial interpretation on unfair competition cases that defines key terms and clarifies the calculation of damages in infringement cases that involve patents and trademarks.

The Interpretation on the Application of Laws in Civil Unfair Competition Cases, which contains 19 sections, essentially defines a laundry list of terms that were previously left undefined in the Anti-Unfair Competition Law. It also untangles procedural rules for...

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...

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