US-China Business Council (USCBC) sources indicated this week that China’s draft Foreign Investment Law (FIL) continues to be revised as it nears final consideration by the National People’s Congress (NPC), even though a final draft has not been released publicly. Some expected changes appear to address concerns raised by the US government in its Section 301 case, as well as by USCBC on issues related to protection of intellectual property during regulatory processes.
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March 13th, 2019
March 13th, 2019
The US-China Business Council (USCBC) is tracking developments at the ongoing National People’s Congress (NPC), China’s highest legislature, which began in Beijing on March 5. On the first day of the NPC, Premier Li Keqiang announced certain tax cuts and spending increases for infrastructure projects. USCBC provided more detailed reporting on Li’s speech here.
USCBC will continue updating member companies on developments at the NPC that impact the business...
March 13th, 2019
The victory could improve US farmers’ ability to compete in the Chinese market, but prospects for China’s implementation of the ruling are still uncertain. Reversing the impact of subsidies may take considerable time.
Due to an insufficient number of judges on the WTO appellate body able to hear a US-China case, an appeal by China could leave the dispute and the subsidies in limbo.
On February 28, a World Trade Organization (WTO) arbitration...
March 13th, 2019
At the end of 2018, China implemented a new nationwide negative list to govern market access for all market entities, both foreign and domestic. Foreign companies will now have to reference both this list as well as the negative list for foreign investment.
The negative list will not create market access openings without changes to the laws and regulations it is based on.
China has touted its new nationwide negative list system of investment management as an improvement to the investment...
March 13th, 2019
The US-China Business Council (USCBC) in January and February collected provincial government engagement priorities from the China teams of nearly 40 member companies representing a variety of industries. Guangdong, Shanghai, and Jiangsu ranked as the top priorities for engagement in 2019.
At the city level, Shanghai generates the most interest from companies, followed by Beijing and Shenzhen.
Companies also identified priority local...
March 5th, 2019
In a report at the opening ceremony of China’s annual National People’s Congress (NPC) Tuesday, Premier Li Keqiang announced that China will reduce the value-added tax (VAT) rate in manufacturing, construction, and transportation and increase spending on infrastructure. The move will benefit both domestic and foreign businesses operating in China.
The VAT rate on manufacturers will be lowered to 13 percent in 2019 from 16 percent, while the rate for the...
February 27th, 2019
Trump announced Sunday that he will extend the March 1 deadline to allow more time for negotiations as talks have made “substantial progress.” A Federal Register announcement is expected to be issued this week that tariff increases will be suspended until further notice.
The linchpin issues are expected to be resolved at a potential meeting between Presidents Trump and Xi in late-March at Trump’s resort in Mar-a-Lago.
Trade talks have reportedly focused on six memoranda of understanding (MOUs)...
February 27th, 2019
The 13th National People’s Congress (NPC) kicks-off in Beijing on March 5.
Convening just after trade negotiations were extended, it will be important to watch how China’s government deals with key issues such as the Foreign Investment Law, which is expected to pass.
USCBC will be monitoring outcomes daily to provide members timely information on major developments.
The 13th National People’s Congress (NPC), China’s top legislature, will begin in Beijing on March 5 and last around...
February 27th, 2019
In meetings over the past week, the US-China Business Council (USCBC) met in Beijing and Shanghai with senior representatives from the National People’s Congress Legislative Working Committee, which is responsible for drafting the Foreign Investment Law, to discuss USCBC’s recommendations. Officials indicated that foreign companies will have five years to transition their business structures to comply with the new law.
USCBC on February 24 submitted comments on...
February 13th, 2019
The regulations aim to limit growth of traditional automobile production, encourage NEV production from strong and competitive companies, and weed out weaker producers through M&As and increased competitive pressure.
Most companies will find it difficult to meet government NEV investment approval standards.
The Chinese government seeks to balance a perceived need to grow NEV production with current overcapacity and misallocated resources...