The spread of the novel coronavirus originating from Wuhan, China has continued to accelerate during the Spring Festival holiday creating a public health emergency and causing operational challenges and uncertainty for companies operating in affected areas.
China Market Intelligence
Nearly three years after the Cybersecurity Law went into effect, regulatory clarity remains elusive, including around the MLPS 2.0. Many companies are conducting self-evaluations, with a few filing directly with MLPS 2.0.
The agreement includes considerable positive developments on issues concerning financial services, agriculture, and intellectual property. China has committed to purchase $200 billion of US goods above 2017 levels. The agreement contains a dispute resolution mechanism that aims to ensure faithful implementation.
These openings will occur in China’s asset management, insurance, banking, credit rating, and futures industries. Financial liberalization will come in the form of not only expected approval of pending licenses but also acceleration of implementation of structural reforms and relaxation of regulatory requirements that are in line with China’s domestic interests.
The US-China Business Council congratulates US and Chinese negotiators for the signing of a Phase One trade agreement earlier this morning. The full text is available here. We are hopeful that Phase One will serve as a stable foundation for building a stronger, more prosperous US-China relationship. Our initial analysis of the most impactful commitments for our member companies is below. USCBC is also soliciting comments from members on what you would like to see addressed in “phase two”...
Humming along between 6 to 6.5 percent, China’s 2019 gross domestic product (GDP) growth numbers remain a driver of global economic growth. Political priorities are likely to maintain that peppy pace through 2020, but lingering structural challenges, ballooning debt, and uncertainties brought by an increasingly antagonistic bilateral trade conflict will require more proactive Chinese fiscal and monetary policies to prevent excessive economic deceleration.
At the National People’s Congress (NPC) Standing Committee meeting, which concluded on December 28, China moved forward with several pieces of legislation that had previously been stalled. The session also set the scene for the next plenary session, or the “Two Sessions,” announcing that it will take place on March 5, and hinted at what could be on the agenda.
While the official “3.0 Shanghai Business Environment Reform” plan does not yet have a set release date, on January 2, the Shanghai municipal government shared the plan’s intended content, and media outlets have since released their own reports on what it might entail. In a recent roundtable with USCBC, Shanghai government officials discussed reforms of a similar nature to those mentioned in the plan’s sneak peek.
On January 2, China’s State Administration for Market Regulation (SAMR) released a long-awaited draft revision of the Anti-Monopoly Law (AML), open for public comment until January 31, 2020.
The final implementing regulations were released on December 31 and came into effect on January 1, marking the last major step of implementing China’s Foreign Investment Law (FIL) passed in March last year. Supporting documents to the implementing regulations also came into effect on January 1.