News Stories Archives

Business Hits Chinese Cybersecurity Rules as Protectionist

Published on November 17, 2016

China - Flag on Button of Black Keyboard.Earlier this month, China adopted broad cybersecurity regulations giving law enforcement enhanced authority to access private data and requiring data to be stored servers located in China. In a letter to Chinese authorities, USCIB and some 40 other industry groups from around the world protested the measure, saying it would wall off China’s internet and unfairly hamper access to the Chinese market.

The letter said Chinese regulators used security as a pretext for enacting protectionist trade policies to benefit Chinese industry, and urged China to to respect its World Trade Organization commitments. “We are concerned that these commitments are undermined by public statements and other forms of high-level guidance that call for indigenous and controllable substitution plans for information technology products and services,” the industry letter stated.

USCIB is organizing a high-level government and business dialogue on US-China cybersecurity, to be held December 16 in Washington, D.C. White House and other government officials will be invited to brief members on the ongoing U.S.-China cyber dialogue and discuss specific member priorities. Please contact Eva Hampl for additional information.

Business Pushes for TFA Ratification at G20 Summit

Published on August 29, 2016

International flagsPromoting robust trade and investment is a key focus of the B20 2016 policy recommendations to the G20 summit, which will take place in Hangzhou, China on September 3 and 4. Business recommendations include improving the global investment environment, strengthening the multilateral system and rolling back protectionist measures. USCIB and several of its members contributed to the recommendations. According to Rob Mulligan, USCIB’s senior vice president for policy and government affairs, G20 governments can take one easy step to boost growth.

“The upcoming summit is an important opportunity for the G20 to push for the ratification of the World Trade Organization’s Trade Facilitation Agreement by the end of this year,” Mulligan said. Once implemented, the TFA has the potential to increase global exports by up to $1 trillion per year, according to the WTO’s World Trade Report.

The International Chamber of Commerce (ICC) also published a set of business recommendations for sustained economic growth ahead of the G20 summit.

Additionally, President Obama will promote the Trans-Pacific Partnership (TPP) during his upcoming trip to China and Laos in early September, according to a White House statement released on August 18. As part of Obama’s Asia trip, he will attend the G20 summit and use use the visit as an opportunity to discuss a wide range of global and regional issues, including adoption of TPP.

“This visit also will support the President’s efforts to expand opportunities for American businesses and workers to sell their products in some of the world’s fastest-growing markets,” the White House said in a statement. “Central to this effort is the Trans-Pacific Partnership, the high-standards trade agreement that will unlock key markets to American exports and cement America’s economic leadership in the Asia-Pacific.”

Obama’s push for TPP comes at a time of growing skepticism that the trade agreement will be approved before election day in November. Both Republican and Democratic nominees for president oppose the agreement.

Business Urges China to Revise Cybersecurity Laws

Published on August 12, 2016

Cyber security concept with lockUSCIB joined a group of 45 business organizations from around the world warning the Chinese government that it would harm business operations and restrict trade if it implements proposed cybersecurity and insurance rules.

A letter the group sent to Chinese Premier Li Keqiang on August 10 urges China to live up to its role as the host of this year’s G-20 leaders summit in September to promote the meeting’s goals of creating an “innovative, invigorated, interconnected and inclusive world economy.”

“[T]he current drafts, if implemented, would weaken security and separate China from the global digital economy,” USCIB and others stated in the letter. “To that end, we urge both The Law and The Provisions be revised to encourage international policy models that will support China’s development as a global hub for technology and services. This will assure a legacy of an innovative, invigorated, interconnected and inclusive world economy from China’s G20 presidency.”

Read the letter.

US Business Concerned with China’s Cybersecurity Regulations

Published on June 10, 2016

china_flag_large-600x300Ahead of the U.S.-China Strategic Economic Dialogue which took place in Beijing on June 6-7 convening high-level officials to discuss trade, finance, security and the environment, USCIB and other business organizations sent a letter to the China Insurance Regulatory Commission citing concerns with China’s proposed technology regulations (“Provisions”).

“If adopted as currently drafted, however, the Provisions would create unnecessary obstacles to international trade and likely to constitute a means of arbitrary or unjustifiable discrimination against producers and service providers in countries where the same conditions prevail,” USCIB and others stated in the letter. “As a consequence, we have concerns that the Provisions could constitute an unnecessary obstacle to international trade.”

The business community asked China to postpone the adoption of the Provisions to allow for further stakeholder input, and to ensure that China’s cybersecurity regulations avoid unnecessary commercial disruptions.

Additionally, on June 13 the United States and other World Trade Organization members expressed concerns about proposed Chinese insurance regulations that they claim favor home-grown technologies over those of foreign producers.

Read the full letter.

 

New Study Details the Impact of an Environmental Goods Agreement on China

Published on April 22, 2016

Solar-workers_3The Coalition for Green Trade, of which USCIB is a founding member, issued the following press release today about a new study onthe impact of an Environmental Goods Agreement on China:

New Study Details the Impact of an Environmental Goods Agreement on China

The Coalition for Green Trade today released the results of a new study detailing the effects that a World Trade Organization (WTO) Environmental Goods Agreement (EGA) would have on the economy of China and the country’s ability to meet its environmental goals.

Overall, the study, “Value of an Environmental Goods Agreement: Helping China Meet Its Environmental Goals,” finds that full implementation of an EGA accord to eliminate tariffs on green technologies by China – the largest producer of these technologies participating in the EGA negotiations – would have a positive impact on the Chinese economy and environment.

The study was principally prepared by Dr. Joseph F. Francois and Laura M. Baughman of the Trade Partnership Worldwide, LLC.  They find that full implementation by China of an ambitious EGA:

  • Increases China’s GDP and national income by billions of dollars;
  • Increases exports by nearly $27 billion, up by 9.8 percent;
  • Increases real spending of roughly $22 billion annually on environmental goods; and
  • Results in gains of approximately $659 billion annually in economic benefits linked to improved environmental quality, based on the literature assessing cost-benefit ratios for investment in improved environmental conditions.

In July 2014, the United States and a group of other countries launched EGA negotiations at the World Trade Organization (WTO) in an effort to improve access to important green and energy efficient technologies, among other objectives. The United States and the 16 other WTO members participating in the EGA talks account for at least 86 percent of global environmental goods trade.

The Coalition for Green Trade is composed of a broad range of associations – including the U.S. China Business Council, which provided advice and outreach in support of this report – and companies doing business in the United States who seek to remove barriers to global trade in environmental technologies.

Boao Forum Focuses on G20 Policy Agenda

Published on March 24, 2016

jdboao_sourceWith less than six months to go to the 2016 G20 Summit, a special session of the Boao Forum for Asia brought together leaders from both business and government to discuss policy priorities to support growth and job creation.

International Chamber of Commerce (ICC) Secretary General John Danilovich moderated the high-level roundtable, which featured keynote addresses from Wang Shouwen, China’s vice minister of commerce and Thomas Lembong, Indonesia’s minister for trade. A major theme of the discussions was the importance of public-private partnership and dialogue to address key global challenges ranging from weak global growth to climate change.

Commenting at the roundtable on the strategic importance of this year’s G20 process, Danilovich said: “It’s vital that this year’s G20 process develops a comprehensive and credible strategy to reinvigorate trade and global growth… As business, we also look to the G20 to drive forward implementation of the landmark UN agreements which were forged last year on sustainable development and climate change.”

The roundtable explored recommendations being developed by the five B20 task forces on trade and investment, infrastructure, employment, financing and small business (SME) development. The issue of SME growth remains a particular priority for ICC’s global outreach, building on engagement throughout last year’s B20 process which lead to the creation of the World SME Forum.

 Read more from ICC

USCIB Statement on China’s WTO Commitments

Published on September 28, 2015

china_flag_largeThe economic relationship between the United States and China is both vital and complex, and U.S. business holds an important stake in this relationship’s success. Since China joined the World Trade Organization in 2001, the United States Trade Representative has submitted a yearly report to Congress on China’s compliance and commitments to its WTO accession. As part of this submission, USCIB is invited to provide a statement to USTR on behalf of its members, providing feedback, comments and recommendations on China’s compliance with its WTO commitments.

USCIB appreciates the significant efforts China has made since joining the WTO to meet its obligations under the terms of its accession agreement. However, there still remain general WTO obligation compliance concerns. Broad business concerns are listed below, excerpted from USCIB’s statement:

China’s Antimonopoly Law (AML): Chinese antitrust enforcement authorities continue to use the AML as a tool to advance industrial policies goals and limit competition by U.S. and other foreign companies. While we support China’s efforts to address anti-competitive practices, Chinese regulators have repeatedly used AML enforcement against U.S. companies absent any proof of market power or anti-competitive harm, and often in disregard of basic norms of fairness, due process, and transparency. USCIB members urge the U.S. government to continue to focus on this issue and its effects on U.S. companies.

National Treatment and Non-Discrimination: Chinese authorities continue to use a variety of policy tools and regulatory measures—including AML enforcement (described above), technology standards policies, IPR enforcement practices, and licensing and investment reviews—to compel transfer of U.S. IP or technologies to Chinese entities at below-market rates and to exclude U.S. companies from full and equal participation in the Chinese market. USCIB members continue to call on China to abide by their WTO commitments of national treatment and non-discrimination and ensure a competitive market that allows for foreign business participation on a level playing field with domestic Chinese firms.

IT Security Measures: Chinese policymakers and regulators have recently proposed or enacted a variety of trade-restrictive and discriminatory requirements on information technology (IT) under the guise of protecting security. These measures, many of which require the use of IT products that are “secure and controllable,” disadvantage U.S. firms by requiring Chinese IT users to purchase Chinese products or suppliers, imposing domestic R&D or content requirements, requiring the transfer or disclosure of source code or other IP, restricting cross-border data transfers, and in other ways. USCIB members urge the U.S. government to continue to press for full suspension of all existing and proposed measures involving trade-restrictive requirements in this area.

Read USCIB’s full statement on China’s WTO commitments.

 

USCIB Opposes Stringent Chemicals Regulations in China

Published on July 30, 2015

Test_tubesOn July 30, USCIB submitted comments to China’s Ministry of Environmental Protection expressing concern with draft language in China’s recently revised guidance on new chemical substances. New language suggests that any new chemical substance in an article that could potentially result in exposure to the environment or humans will be subject to full chemical notification obligations.

USCIB noted that this new requirement would be unnecessarily burdensome, imposing exorbitant costs on importers of articles. Importers would face challenges in obtaining information about the presence of chemicals in articles in order to assess potential compliance. This requirement would be imposed even if there is no corresponding benefit to the protection of human health or the environment.

“In others countries, chemical registration or new chemical notification requirements are much more limited with respect to chemicals in articles,” said Helen Medina, USCIB’s vice president for product policy and innovation. “It is not technically or economically feasible to test every article for every chemical that might be contained in each article.”

USCIB members support efforts to protect human health and the environment, and comply with a variety of national regulations including those specific to chemicals.  For this reason, USCIB is actively engaged in the Strategic Approach to International Chemicals Management (SAICM), chemicals and green economy discussions at the United Nations Environment Program (UNEP), and chemicals deliberations at the Organization for Economic Cooperation and Development (OECD) and at the Asia-Pacific Economic Cooperation (APEC) chemical dialogue.

ICC Chairman, Chinese Vice Premier Strengthen Business Ties

Published on July 30, 2015
L-R: Terry McGraw (ICC) and Chinese Vice Premier Wang Yang
L-R: Terry McGraw (ICC) and Chinese Vice Premier Wang Yang

International Chamber of Commerce (ICC) and USCIB Chairman Terry McGraw met with Chinese Vice Premier Wang Yang in Beijing on July 29 to underscore the importance of incorporating the voice of Chinese companies into global economic governance forums.

McGraw held a series of meetings with Chinese government leaders and business officials seeking to secure the engagement of Chinese companies in ICC’s work to promote cross border trade and investment.

“ICC is the world business organization and our mission is to represent the views of international business to policymakers in key forums such as the G20, the World Trade Organization, the World Customs Organization and the UN Framework Convention on Climate Change,” he said. “China has the world’s second largest GDP and is critical player in the world economy. It is therefore essential that Chinese companies are involved in ICC’s international policy-making process.”

Wang welcomed McGraw’s support and spoke positively of the indispensable role played by ICC in promoting economic growth, global trade and investment, and in strengthening global economic governance.

“We wish to step up our cooperation between Chinese companies and ICC,” said Wang. “China is willing to draw upon your suggestions and I hope ICC will play an active role in China’s reform and increasing exchanges with Chinese business to create more opportunities for foreign cooperation with Chinese companies.”

Wang said the China Chamber of International Commerce (CCOIC) – which houses ICC China – will be responsible for maintaining the close and frequent interactions with ICC.

McGraw also pointed to China’s upcoming G20 presidency, beginning on December 1, and explained that Chinese business will have an increasingly important opportunity to help shape the G20 policy agenda. McGraw shared current Business 20 (B20) priorities under development for the G20 Summit in Antalya, Turkey in November, highlighting trade, investment, infrastructure, human capital and education as priorities for G20 consideration.

“ICC has historically conveyed business priorities to G20 Leaders, and has served as a strategic partner to national B20 hosts to develop policy recommendations for G20 consideration,” said McGraw. “ICC is committed to supporting the Chinese government and the Chinese business community in its preparations for hosting the G20 and we are investing now in our long-run work plan with ICC China and CCOIC.”

Jiang Zengwei, chairman of the China Council for the Promotion of International Trade (CCPIT) joined McGraw in the meeting with Wang.

“We highly value the role of ICC,” said Jiang. “As we grow the participation of Chinese companies in CCOIC, we will work closely with ICC for support on educating Chinese businesses and incorporating their views in critical international policy forums, including trade, investment and intellectual property.”

McGraw and Jiang agreed to a long-term program, featuring a growing number of ICC meetings in China, to develop CCOIC contributions to ICC international business policy.

ICC’s delegation to Beijing also included Cherie Nursalim, vice chairman of GITI Group; Sara Dai, president of Novozymes China; Zhang Yanling, Bank of China and member of ICC Executive Board; Cindy Braddon, vice president for international affairs, McGraw Hill Financial [now S&P Global]; Jeffrey Hardy, director, ICC G20 CEO Advisory Group; and Robert Milliner, senior director, Wesfarmers and B20 Australia Sherpa.

 

 

USCIB, Members, Gov’t Reps Discuss China Engagement with U.S., OECD

Published on July 28, 2015

Blue sky and white clouds, ancient Chinese architectureOn the heels of both the U.S.-China Strategic & Economic Dialogue (S&ED) and the visit of Chinese Premier Li Keqiang to the OECD Headquarters in Paris, USCIB held an important briefing with members to discuss ongoing U.S.-China and OECD-China engagement. USCIB and members met with representatives from several U.S. government agencies, the OECD and the Electronic Industry Citizenship Coalition (EICC) on Wednesday, July 22 at Foley & Lardner LLP in Washington, D.C.

Audrey Winter from the USTR China Office, Michael Tracton from the Office of Investment in the State Department’s Economic Bureau and Zhao Li from the Department of Labor discussed outcomes of the S&ED regarding trade, ICT, investment and labor. Tracton also discussed the increasing collaboration between the OECD and China, which is exemplified by the recent agreement of Primer Li and OECD Secretary General Angel Gurría to develop an OECD-China work plan, as well as collaboration on Chinese responsible business conduct.

The second panel included the State Department’s head on conflict minerals, Eileen Kane, who reported out on her recent trip to China, where she met with several Chinese officials and agencies to gain important connections and advance the relationship with China in regard to conflict minerals. Tyler Gillard, head of sector projects and legal adviser in the responsible business conduct unit from the OECD’s Investment Division, also joined by video conference to provide an overview of the OECD’s broader outreach and capacity-building on conflict minerals with the China Chamber of Commerce. Tara Holeman, program director from EICC, discussed the Conflict-Free Sourcing Initiative (CFSI), which has been developed in line global standards including the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals and the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act.