China Market Intelligence

March 14th, 2007

The full National People's Congress (NPC), which began its annual meeting on March 4, is expected to close this Friday and will likely pass new laws on enterprise income tax and property rights. The enactment of the long-awaited Enterprise Income Tax Law will introduce vast changes to China's corporate income tax regime by unifying the effective tax rates for foreign-invested and domestic enterprises. (CMI will report on the Property Rights Law next week.)

The Enterprise Income Tax Law...
March 14th, 2007

The PRC Administrative Measures on the Control of Pollution Caused by Electronic Information Products (EIPs), also known as China's RoHS, took effect on March 1. A series of supporting regulations, which cover labeling and marking, concentration limits, and testing, accompany the measures. Because many companies have already taken steps to comply with the EU RoHS over the past several years, they have been able to prepare for the initial stage of China's RoHS--meeting labeling, marking, and...

March 14th, 2007
Antimonopoly Law

Officials from the PRC Antimonopoly Office under the Ministry of Commerce's (MOFCOM) Department of Treaty and Law updated USCBC members on the status of the draft PRC Antimonopoly Law (AML) last week. Antimonopoly Office Director Wu Zhenguo commented that since the office was established in September 2004, reviews of merger filings have increased by more than 500 percent, which shows the need for a more comprehensive legal framework.

Submitted to the...

March 14th, 2007

USCBC President John Frisbie testified on March 8 before the US International Trade Commission (ITC) on the impact of Asian economic integration on US trade with China. The hearing was held in conjunction with the first in a series of investigations that the ITC has been directed to conduct by the House of Representatives' Committee on Ways and Means, which focuses on specific aspects of US trade. The first study is titled "US-China Trade: Implications of US-Asia-Pacific Trade and Investment...

March 14th, 2007

Wrapping up his third trip to China in seven months, US Secretary of the Treasury Henry Paulson delivered a speech on March 8 at the Shanghai Futures Exchange on the need for China to further reform its capital markets and lift restrictions on foreign financial services firms. Speaking before an audience of PRC financial sector regulators and company representatives, including local management of US financial services firms in China, Paulson emphasized the importance of deep and liquid bond...

March 7th, 2007

Bilateral exchanges continue this month in the run up to the second round of US-China Strategic Economic Dialogue (SED) meetings between US and PRC officials in Washington, DC, May 23-24.

Alan F. Holmer, the new special envoy for China and the SED, traveled to China last week for introductory meetings with PRC Vice Premier Wu Yi, officials from the People's Bank of China, and officials from the China securities, insurance, and banking regulatory commissions. The US-China Business...

March 7th, 2007

More business visas are being issued to Chinese citizens, reports the US Department of State, and they are being issued more quickly despite the rising number of applications. The number of business and tourist visas issued to PRC nationals in fiscal year (FY) 2006 was 16 percent higher than in FY 2005, according to State Department figures released earlier this year. Issuances of all types of visas to PRC nationals climbed 17 percent, even though US posts in China received 17 percent more...

March 7th, 2007

The PRC National Development and Reform Commission (NDRC) recently issued a new Catalogue on the Direction of Overseas Investment for National Industries. The catalogue, NDRC's third since 2004, acts as an overseas investment guideline for Chinese enterprises across multiple sectors--including agriculture, forestry, livestock, and fisheries; natural resources and mining; manufacturing; and services. The PRC government grants Chinese enterprises that comply with the catalogues and that are...

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...

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