Earlier this month, USCBC submitted comments on the draft Administrative Measures for Lists of Parties with Seriously Illegal and Dishonest Acts via the Ministry of Justice’s online portal. Published by the State Administration for Market Regulation (SAMR), the draft measures aim to establish a new blacklist tied to China’s ever-expanding Social Credit System (SCS).
China Market Intelligence
Brunswick Group conducted a survey to assess the impact of US-China trade tensions on consumers in the United States and China. As a result of the trade war, Brunswick finds that Chinese consumers are changing their spending habits to avoid buying American products and US companies are seen as less favorable.
On Monday, August 5, the Treasury Department officially labeled China a currency manipulator. Though frequently threatened in political election cycles, this is the first time the designation has been imposed since China, South Korea, and Taiwan were cited in 1994 by the Clinton administration. The designation is mostly symbolic, as many of the actions taken by the Trump administration to date, such as implementation of tariffs, go beyond the remediation actions enumerated in US law.
In July of last year, several arms of China's government released the first in a series of documents detailing the country’s latest national crime reduction campaign, encouraging stronger enforcement of existing laws and regulations. While several similar initiatives have occurred in the past, many US companies and risk management experts note that consistent rule-of-law type enforcement is the new normal.
On July 20, China announced 11 opening measures for its financial services industry. While they have been portrayed in the media as game-changing, very few of the openings are in sectors that US financial services companies are interested in. For those measures in sectors of interest, the reforms could lead to real openings only if China removes the underlying regulations and requirements that ultimately act as barriers to entry.
To understand how American companies are dealing with challenges presented by China’s data regime, the US-China Business Council conducted a month-long series of interviews with multinational enterprises across the automotive, financial, pharmaceutical, ICT, and service industries to learn how they are responding to cross-border data flow, data localization, and data security issues.
On July 31, US-China Business Council (USCBC) President Craig Allen testified before the US-China Economic Security Review Commission (USCC) on US companies’ access, risks, and opportunities in China’s health market.
Certain features of the system, such as platforms for sharing company data and publicizing company records online, have already been put in place. Major details are still being sorted out at the local government level through pilot systems and trial measures. Industry regulators have issued broad guidelines on how companies in their sectors will be evaluated and rated, and a few local governments have fleshed out thorough credit rating systems for specific industries.
The shortage of qualified hazardous waste disposal vendors has sent prices skyrocketing, making it difficult for companies to find affordable waste disposal solutions. While regulations on the transportation and storage of hazardous waste exacerbate challenges for industry, illegal dumping and dangerous stockpiling also pose serious challenges for regulators. To mitigate disposal challenges, companies can conduct thorough due diligence when selecting operating sites and waste disposal...
USCBC recently submitted comment letters on both the Draft Data Security Administrative Measures and the Draft Measures for the Security Assessment of Cross-Border Personal Information Transfer. Both of these draft measures implement provisions of the 2017 Cybersecurity Law and aim to regulate the flow of important data and personal identifiable information. The comments seek clarity on select sections and to make China’s cybersecurity standards more consistent with international standards...