China Market Intelligence

January 10th, 2007

In a follow-up to the news that the PRC National People's Congress (NPC) completed its second review of the draft Labor Contract Law, the US-China Business Council's (USCBC) Beijing office this week obtained a copy of the revised draft Labor Contract Law from the Legislative Affairs Office (LAO) of the NPC. Though it has no plans to solicit public comments on this draft, LAO has asked USCBC to submit comments by January 31. The law is expected to undergo a...

January 10th, 2007

USCBC last week hosted a luncheon in honor of PRC Vice Minister of Foreign Affairs Yang Jiechi, who traveled to Washington, DC, to attend the state funeral of late US President Gerald Ford and to meet US government counterparts. The two sides discussed the 2007 bilateral relations agenda, including preparations for the next Strategic Economic Dialogue (SED), which will be held in the second half of May in Washington.

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January 10th, 2007

In a step toward national treatment in its tax regime, the PRC State Council recently revised a land use tax policy and consolidated vehicle and vessel tax policies, giving foreign-invested enterprises (FIEs) the same tax treatment once accorded to domestic enterprises. The State Council is expected to issue similar regulations for other industries over the next few years, according to USCBC sources.

Urban land use tax...
January 10th, 2007

The PRC Ministry of Commerce (MOFCOM) and the State Administration of Taxation last week jointly released the Catalogue of Encouraged Technology Transfers to supplement the State Council's Medium-to-Long Term Development Plan for Science and Technology (2006-20), which was issued in February 2006.

The catalogue lists a total of 214 advanced foreign technologies spread across 29 different sectors, which include...

January 10th, 2007

China's trade in electronic and machinery products accounted for more than half of China's total trade from January to November 2006, according to a MOFCOM report. Exports of standard electronic and machinery products increased, while processing trade exports slowed during that period. Of particular interest, the report notes that domestic production has been unable to meet strong domestic demand for high-end autos. The report also states that demand for...

January 4th, 2007

The PRC National Development and Reform Commission (NDRC) recently issued a notice on restructuring China's domestic auto industry to control overinvestment in the sector. The Notice on Recommendations Related to the Restructuring of the Auto Industry states that the major domestic and foreign auto manufacturers' 2006-10 planned auto production levels far exceed expected demand and stresses that structural overcapacity is the main problem hindering the...

January 4th, 2007

In early November 2006, one of China's most influential and intrepid unofficial newspapers, Southern Weekend (Nanfang Zhoumo), published a list that ranked Fortune 500 companies by their "impact" in China. The ranking considered each company's overall influence in China, social responsibility, and regional contributions, among other factors. Though multinational corporations (MNCs) were ranked based on international standards, such as overall China...

January 4th, 2007
Chinese court upholds Pfizer's patent

The Beijing No. 1 Intermediate People's Court last week ruled that US-based Pfizer, Inc.'s patent on Viagra, the male impotence drug, is valid and ordered two Chinese companies to stop producing counterfeit pills.

The Beijing Health New Concept Pharmacy Co. was ordered to discontinue its sales of similar blue pills, and Jiangsu-based Lianhuan Pharmaceutical...

January 4th, 2007

The PRC State Council recently announced the 2007 PRC holidays. In addition to the New Year Holiday, which ran January 1-3, other holidays for 2007 are as follows:

Chinese New Year: February 18-24 (February 17 and 25 are business days) May Holiday: May 1-7 (April 28-29 are business days) National Holiday: October 1-7 (September 29-30 are business days) PRC holiday schedule (in...
January 4th, 2007

The Standing Committee of the 10th National People's Congress (NPC) met December 24-29, 2006 to review key legislation. The committee approved the Protection of Minors Law and decided to submit the draft Property Rights Law and Corporate Income Tax Law for voting--and the draft Labor Contract Law for a third review--at the next full session of the NPC in March.

Property Rights Law

China's...

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