News Stories Archives

China-OECD Cooperation Crucial for International Business

Published on July 2, 2015

The seventh joint meeting of the U.S.-China Strategic and Economic Dialogue wrapped up on June 24, concluding the highest-level bilateral forum between the two countries. The dialogue is essential for fostering a constructive relationship between the two nations, as well as for paving the way for Chinese economic reform. These bilateral economic talks are complemented by multilateral initiatives, including engagement with the Organization for Economic Cooperation and Development (OECD).

The OECD and China are expected to agree on a detailed program of work for 2015-16. This is particularly timely as China will soon unveil priorities for its 2016 G20 Presidency, and will also outline objectives early next year for its 13th Five Year Plan. China is experiencing an enduring investment downturn and deeper regional divergences.

A return to strong and sustainable growth will necessitate a firm commitment to policy reforms and their implementation. The Business and Industry Advisory Committee (BIAC) to the OECD China Task Force regularly highlights the importance of strengthening rule of law and creating a level playing field for all companies in China, whether foreign or domestic, private or state-owned.

“China and the OECD need each other now more than ever,” said Joerg Wuttke, chair of the BIAC China Task Force, commenting on the visit of Chinese Premier Li Keqiang to the OECD Headquarters in Paris. “As Chinese companies ramp-up overseas investment, and as OECD-based companies continue to sow investments in China, a new and enhanced program for China-OECD cooperation should benefit both parties,” he added.

Shaun_CNBCThe U.S. business community supports China’s reform agenda. On June 25, USCIB Vice President Shaun Donnelly talked about the U.S. business community’s perspective on the U.S.-China Strategic and Economic Dialogue in an interview with CNBC. He noted that the prospects are good for a bilateral investment treaty between the U.S. and China, and he discussed cyber security and government procurement.

USCIB has also been engaged with the OECD’s comments on China’s 13th Five Year Plan, contributing to BIAC’s submission on the plan last year. USCIB’s China Committee will meed to discuss OECD-China relations in late July.

The OECD, a world-leader in policy tools, analysis, and advice on economic governance, is well placed to advise China on its reform agenda. OECD instruments, such as the Guidelines for Multinational Enterprises and the Anti-Bribery Convention, will be especially useful for Chinese companies investing overseas that face both the complexities and expectations of global markets.

“Sustaining China’s growth is in the interest of all parties,” commented Wuttke. “Recognizing the enormous potential for reform, the BIAC China Task Force looks forward to contributing to this next phase of China-OECD cooperation.”

In CNBC Interview, USCIB’s Donnelly Assesses Prospects for U.S.-China Investment Treaty

Published on June 24, 2015

Shaun_CNBCIn an interview on CNBC, USCIB Vice President Shaun Donnelly talked about the U.S. business community’s perspective on the U.S.-China Strategic and Economic Dialogue taking place this week. He noted that U.S. business is looking forward to a bilateral investment treaty between both countries, and he discussed cyber security and government procurement.

Watch the interview.

USCIB Comments on U.S.-China Investment Relationship

Published on May 6, 2015

Blue sky and white clouds, ancient Chinese architectureUSCIB submitted recommendations on behalf of the American business community to the U.S.-China Joint Commission on Commerce and Trade (JCCT), the primary forum for addressing bilateral trade and investment issues and promoting commercial opportunities between the United States and China.

USCIB supports efforts to improve the business environment for both U.S. and Chinese companies. In a statement submitted on April 30, USCIB urged both governments to move ahead on a high-standard U.S.-China Bilateral Investment Treaty and made the case for using the full range of multilateral forums available to work toward improved commercial relations.

The recommendations highlighted specific member concerns that can be efficiently addressed through high-level dialogue afforded by the JCCT process. These concerns included:

  • Anti-monopoly law (AML)
  • Audiovisual
  • Certification, Licensing and Testing Barriers
  • Express Delivery Services (EDS)
  • Government Procurement
  • Intellectual Property Rights
  • Regulatory Environment
  • Standards
  • State-Owned Enterprises
  • Technology Policy

“USCIB appreciates the commitment to ongoing dialogue the United States and China have made in the JCCT process over the years and encourage continued commitments to focus efforts on improving the business environment for both U.S. and Chinese companies,” the report noted.

Read USCIB’s recommendations.

Business Urges China to Halt Controversial Cyber Banking Regulations

Published on April 15, 2015

Computers_loresUSCIB joined a coalition of 31 trade associations from around the world urging the Chinese Communist Party to end banking regulations that require foreign technology companies to give source code and encryption keys to Beijing officials. The global business community has argued that the China Banking and Regulatory Commission guidelines discriminate against foreign providers of information and communications technologies (ICTs) and would effectively shut foreign firms out of  China’s banking sector.

In a letter sent to the Chinese Communist Party on April 13, USCIB and 30 other trade associations called on Chinese leaders to suspend the cyber banking guidelines and open up to stakeholder input.

“Sovereign interest in a secure and development-friendly cyber economy is best served, in any country, by policies that encourage competition and customer choice, both of which necessitate openness to non-indigenous technologies, as well as an ongoing dialogue between industry and government,” wrote USCIB and other associations in the letter. “Approaches that keep out certain technologies would likely render China’s affected industries slower to innovate, more costly to operate, and less capable of managing dynamic security threats leaving Chinese networks less secure.”

Officials from the U.S., the European Union and Japan have criticized the banking rules. U.S. officials say China is using cyber security as an excuse for protectionism.

UPDATE: China issued written notification on April 16, 2015 that it had temporarily suspended implementation of these regulations.

Business Supports Economic Integration in Southeast Asia

Published on April 3, 2015

In the run-up to the launch of the ASEAN Economic Community later this year, the Business and Industry Advisory Committee to the OECD, led by Chair Phil O’Reilly, contributed actively to a series of OECD Southeast Asia Regional Program events held in March in Jakarta, which focused on economic integration in the region. O’Reilly emphasized the importance of this OECD initiative and the benefits that come with good economic governance in the region.

A joint Business Statement by BIAC, the Indonesian Chambers of Commerce and Industry (KADIN), and the ASEAN Business Advisory Council (ASEAN BAC), was presented to regional policymakers and sets out five important steps for economic integration in Southeast Asia. The Business Statement encourages closer cooperation between Southeast Asian countries and the OECD.

Last month the OECD also released its latest Economic Survey on China. Many of the priorities raised by the BIAC China Task Force during the early drafting stage are reflected in the Economic Survey, such as recommendations that all firms should be allowed to compete on a level playing field, and that China needs to scale down state-ownership in commercially-oriented service enterprises and open up more industries for private investment.

USCIB is BIAC’s American affiliate.

China Commits to Stronger IPR Protection at US-China Trade Meeting

Published on December 22, 2014

The 25th US-China Joint Commission on Commerce and Trade (JCCT) concluded last week in Chicago after two days of talks and negotiations. The JCCT is the primary forum for addressing bilateral trade and investment issues and promoting commercial opportunities between the United States and China. At the forum, United States Trade Representative Michael Froman and Secretary of Commerce Penny Pritzker and the Chinese delegation met with Chinese Vice Premier Wang Yang to discuss economic relations between the United States and China.

Officials from both countries made progress on agriculture market access. China committed to import American soybeans and dairy products, and announced that it would pursue dialogue with the United States on biotechnology in agriculture.

China made commitments on Intellectual Property Rights protection, agreeing to protect American companies’ trade secrets and to work on new trade secrets law to enhance protection. China also agreed to streamline China’s regulatory processes and cut red tape for American imports of new, innovative pharmaceuticals and medical devices, which should lead to increases in U.S. exports and jobs in these sectors. And on China’s anti-monopoly law, China committed to treat both domestic and foreign companies equally, and to provide increased transparency for companies under investigation.

With regard to the U.S.-China Bilateral Investment Treaty, USCIB joined several other business organizations in signing a letter to Vice Premier Wang Yang in anticipation of his participation in the JCCT to signal to the Chinese government the U.S. business community’s strong support for a high-standard BIT.

Staff contacts: Justine Badimon and Eva Hampl

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USCIB Chairman Meets with Chinese Vice Premier

Published on May 16, 2014
USCIB Chairman Terry McGraw (left) and Chinese Premier Li Keqiang
USCIB Chairman Terry McGraw (left) and Chinese Premier Li Keqiang

A delegation of leaders from the International Chamber of Commerce (ICC) met today with the Premier of the People’s Republic of China Li Keqiang in Beijing. Led by USCIB and ICC Chairman Terry McGraw, chairman of McGraw Hill Financial [now S&P Global], the delegation included Jean-Guy Carrier, ICC’s secretary general; Jiang Zengwei, chairman of the China Council for the Promotion of International Trade; Lin Shunjie, secretary general of ICC China; and ICC executive board member Andrea Tomat, CEO of Lotto Sport Italia.

Joined by Chinese government officials, the high-level meeting focused on ICC’s work to promote multilateral trade and investment. World business leaders praised Li for China’s new pathway to economic reform and encouraged greater focus on trade and investment initiatives, including working to implement the World Trade Organization (WTO) Trade Facilitation Agreement, protecting intellectual property, lowering barriers to trade and investment, and fighting corruption.

“China is a vital economy and a key player in helping design global economic governance and reform in key forums such as the G20,” said McGraw. “One important step now for China to pave the way for greater market opening that creates more opportunity and higher growth throughout the world, is to demonstrate strong support for implementing the WTO agreement reached last year in Bali.”

ICC’s Products and Services

The meeting also raised awareness of ICC’s essential products and services that can support Chinese companies expanding to international markets and meet the challenges and opportunities of an increasingly integrated global economy. These include ICC’s world renowned commercial dispute resolution services, practical trainings, and voluntary rules, guidelines, and codes that facilitate cross-border transactions and help spread best practice among companies.

McGraw and Carrier briefed Keqiang on the value of ICC as a key player to help Chinese companies operate internationally through close ties with ICC representatives and partners in the country. During discussions, the ICC delegation underscored objectives to increase the use of ICC’s international rules and procedures by Chinese companies to resolve business disputes that arise when doing business across borders. They also highlighted ICC’s practical suite of corporate governance and anti-corruption tools as well as tools to help businesses understand the importance of the intellectual property system and IP rights management.

The delegation also drew attention to the first official Mandarin translation
of the Consolidated ICC Code of Advertising and Marketing Communications Practice (ICC Code), launched in Beijing just a few days before the meeting during the 43rd World Advertising Congress.

Asia-Pacific CEO Forum

Ahead of the meeting with Keqiang, ICC leaders participated in the 2014 ICC Asia-Pacific CEO Forum in Kunshan to explore ways in which the Asia-Pacific region can help stimulate the global economy as it rebounds from crisis and garner the views of business leaders in the region. Combining interactive panel discussions and networking opportunities for some 300 business leaders from around the world, the Forum took place during the third China Import Expo, and this year served as the ICC World Business Leaders Conference.

“The Forum and the Expo are excellent examples of the vibrancy of business in China and the Asia-Pacific region and demonstrate the role it plays in shaping the world economy,” Carrier said.

Forum participants also joined an ICC G20 policy consultation, contributing business views from the region into ICC’s business recommendations to G20 leaders.

ICC events and meetings in China this week are in line with objectives of the organization to establish a greater presence in this important region and secure more participation in ICC’s work program from businesses in Asia.

McGraw Calls for Post-Bali World Trade Agenda at CEO Forum in China

USCIB and ICC Chairman Terry McGraw advocated for a post-Bali World Trade Agenda to create jobs and growth during the opening of the 2nd ICC Asia Pacific CEO Forum in China on May 14.

Regional leaders and CEOs from around the Asia-Pacific region gathered at the Kunshan Expo Center in Kunshan, China for the first day of the ICC Asia Pacific CEO Forum. Building on the success of last year’s inaugural event in New Delhi, the two-day forum aims to demonstrate the vibrancy of the business community in the Asia-Pacific region.

Read more on ICC’s website.

Staff contacts: Rob Mulligan and Justine Badimon

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Mandarin Translation of ICC Marketing Code Launched

Published on May 9, 2014

4727_image001The International Chamber of Commerce (ICC) unveiled the first official Mandarin translation of the Consolidated ICC Code of Advertising and Marketing Communications Practice, the updated version of a document first published in 1937. The ICC Code serves as an ethical rule-setting guide for self-regulatory bodies across all sectors, and is designed to build consumer trust in advertising practice while reducing the need for government regulation.

The Mandarin version of the ICC code was shared with the 1,300 delegates attending the 43rd World Advertising Congress in Beijing, presented by the International Advertising Association (IAA) and China Advertising Association, and hosted by China’s State Administration of Industry and Commerce and the Municipal Government of the City of Beijing.

The ICC code is the gold standard for self-regulation around the world. It offers a globally consistent baseline for economies developing standards while also providing flexibility for local laws and culture to be reflected in a local code.

This ninth revision of the ICC code, published in 2011, expands its global principles to address new technology and practice changes. Now published in 11 languages, the code is used as a foundation and resource for most national and sector self-regulatory systems. Self-regulatory bodies implement the principles to monitor advertising and provide consumers with easy access to make complaints and redress problems.

“The ICC Code reflects the commitment of companies from all sectors of industry and all regions of the world to responsible marketing and advertising,” said Carla Michelotti, vice chair of USCIB’s Marketing and Advertising Committee. “IAA was pleased to facilitate this launch with ICC and encourage cooperation across the sector locally and internationally to promote consistent responsible practice across markets.”

Michelotti, who is the executive vice president, chief legal, government and corporate affairs officer at Leo Burnett Worldwide and serves as an IAA board member, took the initiative to bring partner organizations together on this launch to promote responsible advertising practice.

After the congress on May 11, IAA and ICC will co-host a working level meeting on responsible marketing. Forty representatives from Chinese and international stakeholders will participate including, China State Council, State Administration of Industry and Commerce, Chinese National Advertisers Association, China Central Television Advertising Center, Mars, Proctor and Gamble, as well as Unilever and Sony.

“This is a timely opportunity to share and discuss the universal principles with practitioners in China just as the Chinese government is revising the 1994 Advertising Law at present and within it they are encouraging industry to build self-regulation onto that legislative platform,” said Elizabeth Thomas-Raynaud, ICC’s senior policy executive who staffs the ICC Marketing and Advertising Commission that produces the codes.

Staff contact: Jonathan Huneke

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USCIB Paper on Chinas WTO Compliance

Published on October 10, 2013

USCIB worked with members to submit a statement last month on China’s compliance with its WTO commitments, in response to a federal register notice from the office of the U.S. Trade Representative.

The statement discusses the following cross-sectoral and sectoral issues:

Cross-sectoral: Certification, Licensing and Testing Barriers, Government Procurement, Intellectual Property Rights, Market Access, National Treatment and Non-Discrimination, Regulatory Environment, Standards, State-Owned Enterprises, Taxation

Sectoral: Agricultural Biotechnology, Audiovisual, Chemicals, Customs, Express Delivery Services (EDS), Software and Telecommunications (Services and Equipment).

USCIB’s China Committee will continue working on a more detailed response to USTR’s request and will be in contact with members to develop further sections, including an Annex which will address China transparency and regulatory notice and comment issues, as well as sections on chemicals, electronic payments and pharmaceuticals.

Staff contact: Justine Badimon

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US and China Agree to Action on Climate Change

Published on July 22, 2013

smogAt this month’s U.S.-China Strategic & Economic Dialogue (S&ED) in Washington, D.C., the two countries agreed to undertake a number of steps to address climate change. This followed an announcement that the two nations will begin formal talks on a high-standard bilateral investment treaty (click here for our earlier report).

In May, the USCIB China Environment Task Force met with the EPA’s Steve Wolfson to discuss coordination and capacity-building between China and the U.S. on climate change, including Secretary of State Kerry’s newly created U.S.-China Climate Change Working Group.

On July 10, the working group presented its report on bilateral cooperation between the two countries. This non-binding climate plan lays out five new action initiatives with the goal of reducing greenhouse gas emissions and air pollution by tackling the largest sources of emissions in both countries, focusing on: vehicle emissions; smart grids; carbon capture, utilization and storage; greenhouse gas data collection and management; and building and industry energy efficiency.

In a fact sheet, the U.S. Department of State released the following details of specific projects and commitments.

  1. Reducing emissions from heavy-duty and other vehicles: Heavy-duty vehicles are the fastest growing source of greenhouse gas emissions from transportation in the U.S. and account for more than half of transportation fuel consumed in China. Light-duty vehicles also contribute significantly to greenhouse gas emissions, fuel use and air pollution. Efforts under this initiative will include advancing comprehensive policies to reduce CO2 and black carbon emissions.
  2. Increasing carbon capture, utilization, and storage (CCUS):
    The U.S. and China account for more than 40 percent of global coal consumption. Emissions from coal combustion in the electric power and industrial sectors can be significantly reduced through CCUS. China and the U.S. will cooperate to overcome barriers by implementing several large-scale, integrated CCUS projects in both countries, which will engage companies in both countries and allow for enhanced trade and commerce.
  3. Increasing energy efficiency in buildings, industry and transport:
    The U.S. and China recognize that there is significant scope for reducing emissions and costs through comprehensive efforts to improve energy efficiency. Both sides commit to intensify their efforts, initially focusing on promoting the energy efficiency of buildings, which account for over 30 percent of energy use in both countries.
  4. Improving greenhouse gas data collection and management:
    Both countries place a high priority on comprehensive, accurate reporting of economy-wide greenhouse gas emissions data to track progress in reducing emissions and to develop and implement mitigation policies. The U.S. will work with China to build capacity for collection and management of greenhouse gas emissions data.
  5. Promoting smart grids: The power sector accounts for over one third of U.S. and Chinese carbon emissions. To reduce greenhouse gas emissions from the power sector and put in place a resilient, low-carbon power grid, both countries will collaborate on developing modern, “smart” grid systems, deploying renewable and clean energy, and improving demand management.

In their joint report, the two parties made clear that this just the beginning of a new phase in U.S.-China cooperation on climate change issues, where the Climate Change Working Group is designed to serve as the new leader in this critical bilateral relationship. Working closely with private sector and non-governmental stakeholders, the working group will develop implementation plans for the following initiatives by October 2013, with the goal of continuing to find new ways to expand cooperation on climate and clean energy issues.

Staff contacts: Norine Kennedy and Justine Badimon

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