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China Briefing is a monthly magazine and daily news service about doing business in China. We cover topics relating to the Chinese economy, the market in China, foreign direct investment and Chinese law and tax. It is written in-house by the foreign investment professionals at Dezan Shira & Associates




Chemical & Pharmaceutical

China’s Industry Clusters

Where to source Chinese expertise and academic research from within city clusters around China

Feb. 23 – China originally began clustering its national industries under directives from Chairman Mao Zedong in the early 1950s. This occurred during the Cold War era when it was feared that either Soviet or American attacks on cities such as Beijing and Shanghai could wipe out much of the nation’s industry, centered at that time in these cities. Strategic industries were thus spread across the country to protect against attack and invasion.

The legacy of this today has been that different industrial clusters have developed in different areas of China. In order to develop an effective supply chain, source universities with the right set of talents, and recruit the right type of workers, attention needs to be paid to the regional differences around China as concerns available expertise. Continue reading

Posted in Automotive, Business, Chemical & Pharmaceutical, Economy and Politics, FDI and Foreign Trade, Manufacturing | Tagged , , , , , | 1 Comment

WTO Orders China to Remove Export Restrictions on Industrial Minerals

Will rare earths be next?

By Vivian Ni

Feb. 1 – Following two years of investigation, the World Trade Organization’s (WTO’s) Appellate Body ruled on Monday that China’s use of export duties and quotas on nine types of industrial materials has breached free trade rules. The ruling could affect the organization’s judging of other similar cases where export restrictions are used to hoard domestic natural resources.

The case, filed in 2009 by the United States, the European Union (EU) and Mexico, accused China of imposing trade barriers to the exports of nine minerals: bauxite, zinc, yellow phosphorus, coke, fluorspar, magnesium, manganese, silicon carbide and silicon metal, all of which are widely applied in industrial production. Continue reading

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China to Impose Anti-dumping Duties on US and EU Caprolactam Imports

Oct. 20 – China will start levying anti-dumping duties on imports of caprolactam – an organic compound that is used in the manufacturing of synthetic fibers – from the United States and the European Union, according to the Chinese Ministry of Commerce (MoC).

The MoC released the “Final Determination on the Anti-dumping Investigation into the Caprolactam Imports from the United States and EU (MoC Announcement [2011] No.68)” on October 18, announcing the collection of anti-dumping duties on imports of U.S. and EU-originated caprolactam will start on October 22, and last for the next five years. Continue reading

Posted in Chemical & Pharmaceutical, FDI and Foreign Trade, Finance, Tax and Accounting, Legal and Regulatory, Manufacturing, Regulatory Update | Tagged , , , , , , , , , , | 1 Comment

MOFCOM Ranks China’s Top Development Zones

Sept. 29 – China’s Ministry of Commerce (MOFCOM) released its 2010 Rankings of National Economic and Technological Zones on September 21. At present, China has 128 national-level development zones, 90 of which were included in the 2010 MOFCOM rankings.

According to the rankings, the top 10 development zones remained unchanged from 2009. Most notably, TEDA has been ranked the best national development zone in China for the 14th consecutive year. Continue reading

Posted in Automotive, Business, Chemical & Pharmaceutical, Economy and Politics, FDI and Foreign Trade, Manufacturing, Markets, Technology, Textiles | Tagged , , , , , , | Leave a comment

China’s Control Measures on Heavy Metal Pollution to Boost High-tech Enterprises

Mar. 9 – Although happy to see its rapid economic growth, China is growing increasingly concerned over the heavy pollution it is generating at the same time. A recently released document that calls for stronger quality control in the exploitation and smelting of heavy metals is a sign that China is paying more attention to encouraging an environmentally-friendly economic development model.

China’s State Council recently passed the “Twelfth Five-year Plan to Combat Heavy Metal Pollution” requiring that pollution from heavy metal emissions in critical areas be reduced by 15 percent, compared to 2007, by the year 2015. For all other areas, the pollution levels from heavy metal emissions should not exceed the levels reached in 2007. Continue reading

Posted in Business, Chemical & Pharmaceutical, Legal and Regulatory | Leave a comment

U.S. and China Agree to New Public/Private Healthcare Partnership

Jan. 20 – China and the United States announced a new public/private sector joint partnership yesterday focusing on the healthcare industry. The U.S. Trade and Development Agency, the U.S. Department of Health and Human Services and the U.S. Department of Commerce joined with China’s Ministries of Health and Commerce to announce their support for the establishment of the new organization.

“The economic and social development of any nation depends on the health and productivity of its people,” said U.S. Department of Health and Human Services Secretary Kathleen Sebelius. “This partnership builds on a strong foundation of bilateral cooperation in this critical sector of our economies.” Continue reading

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China to Provide US$600 Billion in Incentives for Emerging Industries

Oct. 15 – Leaked drafts of the central government’s 12th Five Year Plan show that Beijing intends to allocate RMB4 trillion (about US$600 billion) to develop key emerging industries.

The plan is currently being drafted by the Communist Party leadership in Beijing in their annual four-day session ahead of the National People’s Congress meeting in March. It’s at the NPC meeting that the next Five Year Plan is expected to be endorsed. The current one expires at the end of the year. Continue reading

Posted in Chemical & Pharmaceutical, Economy and Politics, Shipping & Logistics, Technology | 1 Comment

Major Bottling Company Demands Apology for False Arsenic Claims

Dec. 7 – Major bottling company, Nongfu Spring, is demanding an apology from the industry and commerce bureau of Haikou, Hainan Province for a claim that falsely charged its products of having high levels of arsenic.

The bureau made the claims on November 24 with orders to remove products from shelves immediately only withdraw it on December 1. A separate test conducted by the Chinese Academy of Inspection and Quarantine showed that all the products were safe. According to The Global Times, the provincial health department admitted that the bureau had made “errors in its procedure.” Continue reading

Posted in Chemical & Pharmaceutical, Economy and Politics, Legal and Regulatory, Manufacturing, Retail, South China | Leave a comment




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