China Market Intelligence

November 12th, 2014
Ryan Ong

US President Barack Obama concluded a constructive three-day visit to China earlier today with announcements of new bilateral deals on a range of issues important to US companies doing business in China, including a significant change in visa policy, reduced tariffs for trade in information technology products, and new targets related to climate change.

Obama’s visit to Beijing included not only his participation in the 2014 Asia-Pacific Economic Cooperation (APEC) organization’s...

November 12th, 2014
Matthew Margulies

China’s main regulatory document laying out sectors open to foreign investment—including sectors with specific ownership caps and requirements for joint ventures—was released in draft form by the Ministry of Commerce (MOFCOM) and the National Development and Reform Commission (NDRC) on November 4. The draft 2014 Catalogue Guiding Foreign Investment (CGFI) is open for public comments until December 3.

While there was little public discussion before the release was announced, the timing...

November 12th, 2014
Jake Laband and Rongce Zhu

The reform of China’s state-owned enterprises (SOEs) was a key focus of last year’s third plenum decision to let the market play a “decisive” role in the country’s economy. Since then, a series of central- and local-level developments have taken place to move that reform forward. In July, the State-Owned Assets Supervision and Administration Commission (SASAC) announced that six of China’s 113 central-government controlled SOEs would adopt mixed public-private ownership models. In August,...

November 12th, 2014
Stephanie Henry

Though China did not play a major role in many congressional midterm elections, the makeup of the new Republican-led Congress may have a significant impact on US-China commercial and trade issues in 2015 and beyond.

At the start of the 114th Congress in January, Republicans will hold at least 53 seats in the Senate—retaking the majority and the chairmanships for each committee. Republicans also strengthened their majority in the House, gaining at least 12 seats, with several races...

November 12th, 2014
Dan Markus

After years of debate, China is set to implement a new resource tax on coal  starting December 1. The new tax will be based on the sales price, not the quantity sold, as is currently the case. Coal-related fees, such as the environmental compensation levy, are also expected  to be cancelled. The reforms aim to standardize the coal tax system and promote resource conservation. Each province’s fiscal and taxation department will propose a tax rate of between 2 and 10 percent to the...

November 12th, 2014
Yan Yu

At the APEC CEO Summit on November 10, US President Barack Obama announced plans to extend visa validity for Chinese visitors, business people, and students coming to the United States. The validation period for student visas may be prolonged to as much as five years, while business and tourist visas will be extended up to ten years. In addition, China has agreed to along the same terms for Americans coming to China. President Obama said that the policy aims to strengthen...

November 7th, 2014

The PRC National Development and Reform Commission (NDRC) and Ministry of Commerce (MOFCOM) on Wednesday published a draft version of the Catalogue Guiding Foreign Investment in Industry for public comment through December 3. The catalogue—and the broader investment restrictions that it lists—has been a major focus of past US-China Business Council (USCBC) advocacy. Such advocacy has also manifested itself in USCBC’s continued push for robust Bilateral Investment Treaty negotiations,...

October 29th, 2014
Stephanie Henry

In a move that could open up China’s domestic market for foreign electronic payment service providers, the State Council on October 29 said it would give greater access to qualified domestic and foreign companies offering bank-card clearing services. The move follows a September 2010 World Trade Organization (WTO) dispute between the United States in China over the ability of foreign companies to offer such services in China. While the decision is the latest move toward granting...

October 29th, 2014
USCBC Staff

The Chinese Communist Party released its fourth plenum decision document—a paper announcing the outcomes from its October “party-building” session—last night. It called for improving governance and increasing accountability, in addition to clarifying legal system reforms first put forward in last week’s fourth plenum communique.

The decision may have added importance as China’s President Xi Jinping led the small working group tasked with drafting the document. Xi has called the fourth...

October 29th, 2014
Jake Laband and Ellen Huber

US companies conducting government affairs (GA) in China face a swiftly evolving operating environment, as Chinese government officials are becoming more difficult to access and GA professionals have a widening range of responsibilities. What’s more, China’s anti-corruption campaign has targeted officials at all levels of government, leaving many reluctant to meet with GA representatives. This shifting environment has forced American companies to re-evaluate their GA strategies...

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