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 vendors, optimize operations to reduce waste output, and maintaining close contact with regulators.

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 and other existing Chinese regulations.

Several companies are planning for worst-case scenarios to maintain their competitiveness amid an unpredictable tariff environment. Potential actions to reduce exposure and risk include shifting supply chains and working with industry peers to seek exemptions.

Since China declared a “war on pollution” in 2014, environmental protection has become a top political priority. The resulting speed of regulatory change and sudden intensity of enforcement has created unintended consequences for industry, such as increased costs and uncertainty throughout the supply chain. In order to help China reach its environmental goals while minimizing negative impacts on the economy, the US-China Business Council (USCBC) has engaged in a series of advocacy efforts with China’s environmental regulator, the Ministry of Ecology and Environment (MEE):

The two most significant market openings in 2019, for oil and gas and telecommunications, are nationwide expansions of earlier liberalizations first piloted in China’s free trade zones. Industries in the catalogue for encouraging foreign investment overlap with those identified in Made in China 2025, indicating sectors China has prioritized for development and investment. The removal of equity caps or complete removal from the negative list does not necessarily mean the industry is fully open to foreign investment, as it may still be subject to licensing and technical restrictions in other laws and regulations.

A transition back to the United States offers an opportunity to reflect on some of the trends the US-China Business Council’s China offices are observing in the field. These trends represent a cross section of information from USCBC members, Chinese and US government officials, and the organization’s in-house analysis.

The process of reviewing public comments on Commerce’s notice to define emerging technologies has slowed down US efforts to unilaterally control emerging technologies, while the process to define foundational technologies has not yet begun. The US government is planning to revise its export control regulations to make it easier to reject license applications for exports of high-tech products to China. The US government has added more Chinese entities to the Entity List and rejected more deemed export licenses to US companies.