How Increasing Enforcement of Export Controls Will Impact Your Business
Rising US-China tensions and growing concerns about the export of high-tech goods are prompting both the US and China to change how they regulate the export of many kinds of products. More than ever, multinationals face increasing challenges clearing bureaucratic and political hurdles bringing their goods to market.
To help companies navigate this increasingly challenging environment, the US-China Business Council held an afternoon briefing on Monday, July 23 with Eric Carlson. Mr. Carlson is a partner at USCBC member law firm Covington & Burling, and is a leading authority on China-related export controls and FCPA-related concerns. Mr. Carlson is fluent in Mandarin Chinese and Cantonese, and represents clients across a range of industries.
Discussion with Alan Turley, Commerce
On July 12, USCBC hosted a members-only discussion with Deputy Assistant Secretary of Commerce for China and Mongolia Alan Turley. Mr. Turley discussed the state of the Section 301 case and the resulting tariffs and investment restrictions, along with ongoing discussions between the United States and China.
Dealing with Tariffs: Best Practices Sharing with Experts
With tariffs on billions of dollars of Chinese exports coming into effect on July 6 and tariffs on $200 billion dollars of Chinese exports on the horizon, businesses are looking for ways to mitigate the impact of government action on their supply chains.
To help companies navigate the looming threats, the US-China Business Council held an afternoon briefing with USCBC member KPMG on Tuesday, July 3. The event featured presentations from KPMG China's Head of Procurement Advisory Michael Seitz and Head of Tax Anthony Chau. The presentation was followed by Q&A and a discussion with USCBC members.
Government Affairs Roundtable: Investment Restrictions
On Monday, July 2, USCBC led a discussion on expected announcements by the Trump administration regarding restrictions on investment resulting from the Section 301 investigation into Chinese intellectual property and technology transfer issues.
Agriculture Industry Roundtable: Preparing for Chinese Tariffs
USCBC hosted an Agriculture Industry Roundtable on June 28, 2018, to discuss how China’s retaliatory tariffs on agricultural products affect these businesses.
In response to US tariffs on $34 billion in Chinese goods that will go into effect on July 6, China has announced tariffs on $34 billion in US goods, including agricultural products like soybeans, beef, pork, fruit, nuts, seafood, and tobacco. Some of these products, including pork, fruit, and nuts, were already subject to additional tariffs by China in April, meaning that these new tariffs would further increase the duties on them. We look forward to having an active discussion on the impact of these tariffs and how to respond.
Beijing China Operations Conference 2018
While US-China trade tensions are front of mind for many executives in Beijing, attendees of the US-China Business Council’s (USCBC) Beijing China Operations Conference last week indicated that other operational issues continue in the background. Senior executives from a broad range of industries gathered June 21 in Beijing to discuss key operational issues: tax reform, SOE partnerships, China’s outbound development, and US-China relations.
Andy Rothman, investment strategist of Matthews Asia, highlighted the brighter aspects of China’s economy for multinationals -- a growing consumer economy, a stable housing market, and a problematic but manageable debt load. Andrew Choy, international tax partner at EY in Beijing, discussed recent trends in China’s tax reform, and areas to watch in the future.
Timothy Stratford, managing partner at Covington & Burling LLP’s Beijing office, and Dr. Yukon Huang of the Carnegie Endowment discussed the US-China relationship. While Huang evaluated the current tensions with a number of data sets from his forthcoming book, Stratford discussed the relationship from the more operational standpoint of companies operating here. Huang discussed the importance of considering the global trade balance, rather than just bilateral trade balances, in addition to factors like consumption and savings rates that underpin such statistics. From his perspective as a former USTR official, Stratford discussed the difficulties negotiators face to overcome China’s reliance on state subsidies.
Professor David Li of Tsinghua University, and Jonathan Fritz, the charge d’affaires at the US Embassy in Beijing, addressed USCBC members over lunch. Fritz, while highlighting broad areas of cooperation between the two countries, noted the “rough seas” ahead in commercial relations. Li predicted that US midterm elections are likely to have an impact on any progress reached during negotiations.
Two panels of senior executives met on stage to discuss their partnerships with state-owned companies, and how reforms and the anticorruption effort have affected their joint venture agreement considerations. Closing the day, executives from Autodesk, Chubb Insurance, and Control Risks discussed where their companies found success in the Belt and Road initiative.
Government Affairs Roundtable with USCBC Senior Vice President, Erin Ennis, and Matthew West, Partner, Baker Botts
The US-China Business Council hosted a Government Affairs Roundtable to discuss Section 301 tariffs and updates to investment restrictions. This event was led by USCBC Senior Vice President Erin Ennis, and included a discussion on FIRRMA/investment restrictions with Matthew West, Partner, Baker Botts.
BakerMcKenzie 2018 Asia Pacific Healthcare Summit
R&D challenges, pricing and reimbursement pressures, integration of health systems, technological disruptions as well as demands for patient-centric care models require healthcare companies to innovate and transform their business models. These transformations can unlock new business opportunities and help healthcare companies gain competitive advantages. However, they also give rise to legal and regulatory considerations.
This interactive forum provided the opportunity to hear about the most significant healthcare concerns to the industry. These included cybersecurity risks due to digitalization. The conference also analyzed how innovation is driving the transformation of business and operating models, as well as the delivery of products and patient care.
A panel of industry experts and healthcare practitioners from Baker McKenzie shared insights and commercial solutions that can help navigate the growing complexities.
USCBC 45th Annual Membership Meeting
Tariffs and trade deals are still uncertain, but China’s government restructuring is likely to be the most significant long-term outcome this year, said speakers at USCBC’s 45th Annual Membership Meeting June 5. Members from a wide range of companies joined USCBC staff and guest speakers to discuss changes in the Chinese business environment and the US-China relationship at this important time for trade.
Keynote speaker Kevin Rudd, former Prime Minister of Australia and President of Asia Society, outlined high-level priorities for the United States in the world and its relationship with Asia, setting the tone for the importance of the US-China relationship at this pivotal moment. José Viñals, Group Chairman of Standard Chartered, discussed the unique aspects of the financial sector in business with China, and gave members his perspective on the Belt and Road and the role that global financing can play.
The meeting’s morning panel covered domestic politics, with an explanation of the key changes resulting from China’s government reshuffle this year and the expanded authority of President Xi from Clemson University’s Dr. Xiaobo Hu and Jude Blanchette of Crumpton Group. Owen Haacke, head of USCBC’s Shanghai office, updated members on the operating environment in China from an on-the-ground perspective, with Bliss Khaw from Control Risks advising members on key business issues they may face and best practices to deal with them.
The afternoon wrapped up with a panel of government speakers, with members hearing from Greg Walters, Assistant US Trade Representative for Intergovernmental Affairs and Public Engagement, and Jason Hafemeister, Trade Policy Coordinator at the US Department of Agriculture. The two covered the Section 301 investigation and updates on tariffs as well as Commerce Secretary Ross’ recent China trip and agriculture and energy deals discussed there.
USCBC members may access reports and speaker presentations here.
Dealing with Employees Who Turn Bad - Conflicts of Interest, Embezzlement, Kick-backs
The US-China Business Council (USCBC) was pleased to hold a breakfast briefing on Thursday, May 31 with USCBC member Faegre Baker Daniels’ Partner Kevin L. Jones who spoke about dealing with situations arising from serious employee misconduct. Mr. Jones has worked closely with companies to address situations where employees set up competing businesses, embezzle money, contravene China’s anti-bribery laws or otherwise create serious challenges to a company’s ongoing operations. He talked about the challenges for employers to get the right evidence and successfully negotiate employees out of an organization.
Kevin Jones has been based in Greater China for more than 20 years and leads the firm’s labor and employment practice in China. Kevin and his team of dedicated employment lawyers advise clients on all aspects of contentious and non-contentious employment matters. He has a particular focus on staffing issues arising from acquisitions and other re-organisations, strategic employment counseling, resolving labor disputes, advising on anti-corruption compliance, investigating employees for misconduct or FCPA/anti-bribery violations, employee hiring and termination, immigration, mass layoffs and labor unrest, establishment and enforcement of company polices, advising on labor union issues, and drafting and negotiating collective contracts.