• About
  • Archive
  • Contact
  • Home 1
  • Submit a Story
  • Submit a Story
  • USCBC Podcasts
China Business Review
  • Operations
    Multinational Supply Chains in a Post-Pandemic China

    Multinational Supply Chains in a Post-Pandemic China

    Managing Risk in the “New Era”

    Managing Risk in the “New Era”

    Design Patents vs. Trade Dress: Protecting IP in China

    Design Patents vs. Trade Dress: Protecting IP in China

    As China Emerges from COVID-19, US Companies Invest to Compete

    As China Emerges from COVID-19, US Companies Invest to Compete

    Inside the Mad Rush for Masks – Anatomy of a 10 Million Mask Order

    Inside the Mad Rush for Masks – Anatomy of a 10 Million Mask Order

    Addressing Risk in the Era of US-China “Great Power” Competition

    Addressing Risk in the Era of US-China “Great Power” Competition

  • Politics
    Hong Kong’s National Security Law, Five Months In

    Hong Kong’s National Security Law, Five Months In

    China Implements its Long-Awaited Unreliable Entities List Mechanism

    China Implements its Long-Awaited Unreliable Entities List Mechanism

    Competing WTO Reform Agendas and the Contest for the Next Director-General

    Competing WTO Reform Agendas and the Contest for the Next Director-General

    China Eyes Further Northeast Asian Economic Integration in RCEP

    China Eyes Further Northeast Asian Economic Integration in RCEP

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    A Game of Chicken

    A Game of Chicken

  • Tech
    The Growing Intersection of Digital Health and Data Processing in China

    The Growing Intersection of Digital Health and Data Processing in China

    Export Controls on Emerging and Foundational Technologies: A Null Set?

    Export Controls on Emerging and Foundational Technologies: A Null Set?

    How Companies Are Reacting to China’s New Data Security Scheme

    How Companies Are Reacting to China’s New Data Security Scheme

    China’s Participation in International Standards Setting: Benefits and Concerns for US Industry

    China’s Participation in International Standards Setting: Benefits and Concerns for US Industry

    The Hidden Challenges of China’s Booming Medical AI Market

    The Brave New Business Models Making Waves in China’s Ecommerce Market

    Trending Tags

    • Intellectual Property
    • innovation
    • cybersecurity
    • ecommerce
    • tech
  • Society
    COVID-19 Could Doom or Deliver US-China Commercial Relations

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    The Year in Social Credit: Where is Corporate Social Credit Going in 2020 and Beyond?

    The Year in Social Credit: Where is Corporate Social Credit Going in 2020 and Beyond?

    Open Government Developments in China: Implications for US Businesses

    The Hidden Challenges of China’s Booming Medical AI Market

    The Handshake that Changed the World

    President Carter and Vice Premier Deng at the Performance of American Arts

    January 29, 1979 Performance of American Arts for Deng Xiaoping

  • Media

    Gallery: Craig Allen’s Trip to China

    USCBC 45th Annual Membership Meeting

    USCBC 45th Anniversary DC Open House

    USCBC President’s China Visit

    USCBC Hosts Business Roundtable with Zhejiang Party Secretary Che Jun

    USCBC hosts Comprehensive Economic Dialogue (CED) Luncheon

  • Podcasts
No Result
View All Result
  • Operations
    Multinational Supply Chains in a Post-Pandemic China

    Multinational Supply Chains in a Post-Pandemic China

    Managing Risk in the “New Era”

    Managing Risk in the “New Era”

    Design Patents vs. Trade Dress: Protecting IP in China

    Design Patents vs. Trade Dress: Protecting IP in China

    As China Emerges from COVID-19, US Companies Invest to Compete

    As China Emerges from COVID-19, US Companies Invest to Compete

    Inside the Mad Rush for Masks – Anatomy of a 10 Million Mask Order

    Inside the Mad Rush for Masks – Anatomy of a 10 Million Mask Order

    Addressing Risk in the Era of US-China “Great Power” Competition

    Addressing Risk in the Era of US-China “Great Power” Competition

  • Politics
    Hong Kong’s National Security Law, Five Months In

    Hong Kong’s National Security Law, Five Months In

    China Implements its Long-Awaited Unreliable Entities List Mechanism

    China Implements its Long-Awaited Unreliable Entities List Mechanism

    Competing WTO Reform Agendas and the Contest for the Next Director-General

    Competing WTO Reform Agendas and the Contest for the Next Director-General

    China Eyes Further Northeast Asian Economic Integration in RCEP

    China Eyes Further Northeast Asian Economic Integration in RCEP

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    A Game of Chicken

    A Game of Chicken

  • Tech
    The Growing Intersection of Digital Health and Data Processing in China

    The Growing Intersection of Digital Health and Data Processing in China

    Export Controls on Emerging and Foundational Technologies: A Null Set?

    Export Controls on Emerging and Foundational Technologies: A Null Set?

    How Companies Are Reacting to China’s New Data Security Scheme

    How Companies Are Reacting to China’s New Data Security Scheme

    China’s Participation in International Standards Setting: Benefits and Concerns for US Industry

    China’s Participation in International Standards Setting: Benefits and Concerns for US Industry

    The Hidden Challenges of China’s Booming Medical AI Market

    The Brave New Business Models Making Waves in China’s Ecommerce Market

    Trending Tags

    • Intellectual Property
    • innovation
    • cybersecurity
    • ecommerce
    • tech
  • Society
    COVID-19 Could Doom or Deliver US-China Commercial Relations

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    The Year in Social Credit: Where is Corporate Social Credit Going in 2020 and Beyond?

    The Year in Social Credit: Where is Corporate Social Credit Going in 2020 and Beyond?

    Open Government Developments in China: Implications for US Businesses

    The Hidden Challenges of China’s Booming Medical AI Market

    The Handshake that Changed the World

    President Carter and Vice Premier Deng at the Performance of American Arts

    January 29, 1979 Performance of American Arts for Deng Xiaoping

  • Media

    Gallery: Craig Allen’s Trip to China

    USCBC 45th Annual Membership Meeting

    USCBC 45th Anniversary DC Open House

    USCBC President’s China Visit

    USCBC Hosts Business Roundtable with Zhejiang Party Secretary Che Jun

    USCBC hosts Comprehensive Economic Dialogue (CED) Luncheon

  • Podcasts
No Result
View All Result
China Business Review
No Result
View All Result
Home Policy & Regulations

A Fuller Picture

USCBC by USCBC
November 1, 2009
Share on FacebookShare on TwitterLinkedin

After spending the past eight years in the Washington, DC, office of the US-China Business Council (USCBC), I recently relocated to Shanghai to become the new chief representative of USCBC’s Shanghai office. Having worked with the US-based representatives of USCBC member companies, I find it interesting to work on similar issues with their Shanghai-based colleagues, who often have a different perspective.

What immediately struck me upon arrival is the quest among US companies in Shanghai for information about the direction of PRC government policies, at the central or local levels. The central government influences—in some cases quite heavily—what US companies can and cannot do. Therefore, the “philosophical” questions with which US companies must grapple tend to have a political bent to them: Is the government favoring investment in a particular industry, and if so, for how long? Most important, what happens if the government changes its mind?

The challenge is assessing the seemingly accurate yet contradictory information that comes from all sides. For instance, the central government boosted the target for electricity generated from solar energy, then restricted the amount of polysilicon produced and removed certain technologies and materials needed in solar panel production from China’s list of encouraged imports. (Polysilicon is a key ingredient in photovoltaic panels.) The central government said it wants to move away from low value-added and energy-intensive production but raised the rebate on value-added taxes for certain low-end manufactured products. A new law governing labor contracts took effect nationwide, but local officials hesitate to enforce some of its provisions because of local unemployment concerns during the economic crisis. Trying to stay on top of these policies when one government policy overtakes another at dizzying speed is difficult. In such an environment, it is not surprising that lack of transparency remains a top concern of USCBC member companies year after year.

Economic data sometimes just contribute to US investors’ confusion. When executives at headquarters read about domestic growth picking up, they wonder why their business units aren’t reporting double-digit growth as they had before the economic crisis. The reality is complex, and USCBC staff have spoken with a variety of companies across sectors to try to understand how China’s response to and recovery from the global economic crisis affect foreign investors. A few examples highlight this. Sales of home appliances appeared to be up in the past six months, but mostly in less-developed regions that participated in the government-sponsored “Home Appliances to the Countryside Program,” which subsidizes rural residents’ purchases of white goods. This helped keep retailers afloat but did little to ease tight margins. Moreover, the subsidy recipients are primarily located in third- and fourth-tier cities, where few foreign retailers are established. But in more developed cities such as Beijing and Shanghai, most consumer sales related to retail or home goods have remained low, waiting for the real estate sector to recover.

In another example, one USCBC member company in the engineered materials business noted that it has had little difficulty selling to the telecom sector but much greater difficulty selling the same product to the building materials sector. Why? The central government is aggressively building the third-generation (3G) telecom network and has allocated funds specifically for this task. In contrast, construction of office buildings and new residences has not been a focus of central-government spending. Such examples illustrate that it might be hard for US executives to see the full picture without knowing the background context.

One of USCBC’s most valuable services is that we look into these “behind the scenes” types of questions to give member companies the information they need to make sound business decisions. USCBC members also play a valuable role by sharing their experiences and views with each other, thus improving the overall ability of US companies to operate in China. As USCBC’s Shanghai office works to serve members, we look forward to exploring these questions, and facilitating conversations among members, to make the operating environment in China just a little clearer.

[author]Julie Walton is the US-China Business Council’s chief representative in Shanghai.[/author]

Tags: Letter from Shanghai
USCBC

USCBC

Next Post

Developing the Next Generation of Chinese Business Leaders

Recommended.

The Growing Intersection of Digital Health and Data Processing in China

April 12, 2021

From West to East: The Charged Challenge of Delivering Electricity

April 7, 2021

As US-China Ties Fray, Indiana Firms Seek to Keep Trade Flowing

March 26, 2021

Multinational Supply Chains in a Post-Pandemic China

March 5, 2021

Latest Podcasts.

White House and industry meet to discuss semiconductor shortage

April 14, 2021

A quick recap of Forecast Beijing 2021

April 7, 2021

How can the United States compete with China on semiconductors?

April 2, 2021

What companies should know about cybersecurity and data flows in China

March 31, 2021
China Business Review

China Business Review is the official magazine of the US-China Business Council, a nonprofit and nonpartisan trade association that represents more than 200 American companies doing business in China.

  • How to contribute to China Business Review

Categories

  • Bilateral Relations
  • Business Etiquette
  • CBR Spotlight
  • China Deals
  • Corruption
  • Cybersecurity
  • Ecommerce
  • Environment
  • Finance
  • Galleries
  • Getting Started
  • HR & Staffing
  • Infographics
  • Innovation
  • Intellectual Property
  • Management
  • Media
  • Operations
  • Opinion
  • Policy & Regulations
  • Politics
  • PR & Marketing
  • Rural Issues
  • Safety
  • Social Policy
  • Society
  • Standards + Licensing
  • Sustainability
  • Tax
  • Tech
  • Top Story
  • Trade
  • Uncategorized
  • US-China Business Council
  • Videos

Tags

Agreements Agriculture Alibaba Best Practices Business Environment China China's Investments Abroad China Market Intelligence Chinese Consumers Chinese Investment Commentary Consumer Trends E-Commerce Economic Trends Energy Environment Events Food Foreign Investment Going Global Healthcare Reform Human Resources Infrastructure Internet Interview Investment Investments into China IPO Joint Venture Labor Legal Analysis M&A Manufacturing Media National People's Congress Q&A Strategic and Economic Dialogue Supply Chains Technology Trade Transparency US-China Relations USCBC US Exports to China Xi Jinping

Join our Mailing List

Sign up for the US-China Business Council's newsletters to stay ahead of the game with roundups, analysis, and commentary.

Sign Up

Follow Us

  • About
  • USCBC
  • Submit a Story
  • Archive

© 2021 China Business Review

No Result
View All Result
  • Operations
  • Politics
  • Tech
  • Society
  • Media
  • Podcasts

© 2021 China Business Review