China Market Intelligence

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...

February 13th, 2019
By Vivian Zhu

The US-China Business Council held its 38th annual Forecast conference in Washington, DC, on January 31. The program featured comprehensive projections for the Chinese economic environment, US trade policy, the state of US-China relations, and commercial best practices for businesses with operations in China, with a focus on the ongoing trade negotiations.

Robert Dohner, nonresident senior fellow at the Atlantic Council, gave this year’s economic forecast and William Evanina from the...

January 30th, 2019
By Angela Deng

Trade talks to date have touched on a wide range of issues, but have not narrowed differences on structural issues like IP protection, forced tech transfers, and subsidies to China’s state-owned enterprises.

China has taken some steps to reduce trade tension, namely pledging to buy more US products, and a few measures addressing substantive US concerns on trade.

Vice Premier Liu He is meeting on January 30 and 31 with US Trade Representative...

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