China Market Intelligence

March 13th, 2019
By USCBC Staff

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
By Jack Kamensky
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
By Melinda Xu and Owen Haacke

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
By USCBC Staff

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
By Angela Deng
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
By USCBC Staff
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
By USCBC Staff

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
By Chris Miller

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...

February 13th, 2019
By Angela Deng and Ricky Altieri

Some of China’s top officials have started to endorse “competitive neutrality,” a principle under which enterprises of all forms of ownership and sizes are treated equally.

China has introduced some reform measures that align with OECD guidelines on competitive neutrality.

Tax and competition reforms have been published, but key details such as commercial rates of returns, equal access to financing, and procurement practices remain to be...

February 13th, 2019
By USCBC Staff
Despite moderating GDP growth, the Chinese economy expanded 6.6 percent in 2018, exceeding the official growth target of 6.5 percent. A combination of market liquidity, tariff-driven slumping exports, and new technology restrictions are seen as the biggest headwinds to economic growth in 2019. USCBC member companies are evaluating existing and future investments in China and considering alternative markets for new investments.

Economists predict growth will continue to moderate...

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