News Stories Archives

Deepening OECD-China Cooperation

Published on July 8, 2013

Trade and investment relations with China remain at the top of the international agenda, as illustrated by this week’s latest round of talks under the U.S.-China Strategic and Economic Dialogue. It is in this context that the BIAC China Task Force presented business perspectives to a meeting of OECD Ambassadors, national delegates and OECD secretariat officials on June 21 in Paris. BIAC representatives voiced concerns about a looming credit crunch facing the Chinese economy, as well as longer-term issues pertaining to the overall business climate and environmental pressures.

As these challenges continue to grow in China, BIAC representatives encouraged the OECD to seize this moment to advise and work with China’s new leadership on specific reforms conducive to strong and more sustainable growth, such as better corporate governance, anti-corruption and reform of state-owned enterprises. BIAC’s China Task Force is looking forward to closer cooperation between the OECD and China this year and to exploring more opportunities to engage on issues where the OECD can provide value.

A summary of the meeting and the BIAC China Task Force final presentation will be circulated in the coming weeks to USCIB’s China Committee.

Staff contact: Justine Badimon

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The Law of Letters of Credit in China

Published on April 18, 2013

New Guide to Letter of Credit Law in China

4488_image001New York, N.Y., April 18, 2013 – A new publication from the International Chamber of Commerce (ICC) offers immense help to anyone doing export/import business in China using letters of credit (LC), according to the United States Council for International Business (USCIB), ICC’s American national committee.

The Law of Letters of Credit in China, now available for purchase from the USCIB International Bookstore, provides detailed commentary, in-depth explanations and critical analyses that help shed light on how Chinese LC disputes are resolved and the judicial interpretations that define China’s LC system, based on over 500 court case decisions.

“Although China has not yet enacted any LC law, over the past 20 years, the Supreme People’s Court has promulgated a series of judicial interpretations, provisions and meeting minutes that combine to form the legal authority on LCs in China,” said Li Jian, general counsel of the Export-Import Bank of China. “The present work is an indispensible guide for law, trade and banking professionals trying to understand and apply these judicial interpretations.”

The publication’s author, Jin Saibo, who was involved in the eight-year drafting process of The Supreme People’s Court of China’s LC Judicial Interpretations, has structured the book to cover such critical issues as:

  • Conformity of China’s LC system with international practices, i.e., International Standard Banking Practice
  • Consolidation of disputes concerning LCs and underlying practices
  • Statutory limitations of action
  • Recovery for damages
  • Reasonable legal fees

The Law of Letters of Credit in China is available in English only.

About USCIB:

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.

USCIB’s Trade Services include: ATA Carnet, commonly known as the Merchandise Passport, which allows goods to enter over 85 customs territories tax- and duty-free for up to one year; eCertificates of Origin, fully electronic processing of Certificates of Origin, returned to you by e-mail, fast and complaint with ICC Guidelines for Certificates of Origin; and the USCIB International Bookstore, which enables customers to learn international business through unique titles covering a range of topics.

Contact:

Hsin-Ya Hou, USCIB International Bookstore
+1 212.703.5066, hyhou@uscib.org

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News Brief High Standards Needed in U.S. – China Investment Treaty

Published on March 5, 2013

Columbia University’s Vale Center has published a short essay by Shaun Donnelly, USCIB’s vice president for investment and financial services, presenting the business case for a high-standards U.S.-China bilateral investment treaty (BIT). The essay appears in the center’s journal Columbia FDI Perspectives and is available by clicking here.

Donnelly’s piece responds to an earlier essay in the journal by Karl Sauvant and Huipeng Chen advocating a different approach toward the China BIT negotiations. He argues that it is essential to get a comprehensive, high-standard BIT with China, with meaningful market-opening liberalization as well as strong investor-state dispute resolution provisions, and not to settle for a quick compromise with lower protections just for the sake of getting a deal. Donnelly argues that both the U.S. and Chinese governments – as well as their respective business communities – need the strong protections and dispute-settlement provisions one can only get in a high-standard, 21st-century BIT.

USCIB is actively working to promote member views in the context of the U.S.-China BIT negotiations, and views a high-standards BIT as a key element in USCIB’s 2013 trade and investment agenda.

Staff contact: Shaun Donnelly

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Latest U.S.-China Joint Commission on Commerce and Trade

Published on December 21, 2012

4416_image002The 23rd session of the U.S.-China Joint Commission on Commerce and Trade (JCCT) concluded in Washington, D.C. on December 19.  Established in 1983, the JCCT is the main forum for addressing bilateral trade and investment issues and promoting commercial opportunities between the United States and China.

The latest forum was chaired by U.S. Trade Representative Ron Kirk, Acting Secretary of Commerce Rebecca Blank and Chinese Vice Premier Wang Qishan. Representatives from 25 Chinese government agencies also participated, as did U.S. Ambassador to China Gary Locke
and U.S. Secretary of Agriculture Tom Vilsack.

According to Ambassador Kirk’s office, despite advancements on some key issues – such as addressing concerns on intellectual property rights, agreeing on the elimination of significant regulatory obstacles impeding U.S. exports and securing meaningful steps toward China’s accession to the WTO Government Procurement Agreement – there is still much work to be done to ensure that China’s market is open to American exports and investment.

The U.S. and Chinese governments also signed agreements related to enhancing understanding and measurement of bilateral trade, and increasing the numbers of reverse trade missions, which support China’s continued development while creating more U.S. exports and jobs.

According to Justine Badimon, USCIB’s manager of China and Asia-Pacific affairs, business hopes to see continued increased commitment from both sides on building sustainable strong economic ties to ensure mutual benefits, and supports the advancement of economic issues through meaningful bilateral dialogues such as the JCCT and the Strategic & Economic Dialogue.

Click on the links to read a USTR press release on the JCCT’s conclusion and a fact sheet on the meetings detailing key results.

 

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USCIB Convenes China Business and Legal Forum

Published on November 14, 2012
The Washington, D.C. forum brought together Chinese and American business leaders and government officials.
The Washington, D.C. forum brought together Chinese and American business leaders and government officials.

Yesterday in Washington, D.C., USCIB partnered with the China Council for the Promotion of International Trade (CCPIT) and the U.S.-China Legal Exchange Foundation to host a Business and Legal Forum on U.S.-China Trade and Investment at the Cosmos Club. A large Chinese delegation, headed by CCPIT Vice President Dong Songgen, included senior executives from Chinese companies, industry trade groups, legal experts and government officials.

The forum, which was moderated by Tad Ferris, a partner with Holland & Knight LLP and co-chair of USCIB’s China Committee, provided a large Chinese delegation the opportunity to meet with American executives and policy makers, share experiences and gain a deeper understanding of the opportunities for trade and investment between our two countries. The event addressed a range of business issues, presenting both Chinese and American perspectives on such critical topics as intellectual property and innovation, energy and green growth, and enabling frameworks for trade.

Ferris said that the significant effort that went into this forum reflects the importance of the U.S.-China relationship to USCIB and USCIB member companies. He also observed that the forum reinforced bilateral understanding and channels of communication that help USCIB members, Chinese counterparts, and other stakeholders understand critical issues in this relationship and seek mutually beneficial solutions.

Nicole Melcher, the Commerce Department’s director for China and Mongolia, provided keynote remarks, explaining how the U.S. seeks to help smaller companies tap into the burgeoning Chinese market. She said helping American SMEs export to China is a top priority under the Obama administration’s National Export Initiative, which aims to double U.S. exports by 2015.

While SMEs account for more than a third of total U.S. exports, Melcher said, only 10 percent of smaller companies that export are doing so to China. She observed that these companies’ reluctance to enter the Chinese market reflected the uncertainties and risk of doing business there, as well as increasingly aggressive and competitive Chinese companies.

USCIB China Committee Co-Chair Tad Ferris (Holland & Knight) and keynote speaker Nicole Melcher of the U.S. Department of Commerce.
USCIB China Committee Co-Chair Tad Ferris (Holland & Knight) and keynote speaker Nicole Melcher of the U.S. Department of Commerce.

Melcher said the administration aimed to undertake a range of efforts to spur SME exports to China, including a national export marketing campaign, expanded access to financing through the Export-Import Bank and Small Business Administration, and a “one-stop shop” for federal export assistance to promote trade with China.

Melcher also noted the importance of the US-China Joint Commission on Commerce and Trade (JCCT) which is the primary forum for addressing US-China trade issues. The next JCCT will be held before the end of the year.

Another speaker, He Ning, the minister for economic and commercial affairs at the Chinese embassy in Washington, said the economies of China and the United States have never more closely linked than they are today. Total bilateral trade volume reached $466 billion last year, and is expected to reach a new record high this year, he said, while the two countries have become each other’s second-largest trading partners.

But the relationship is not perfect or free of problems, He stated. With have very different legal systems, there is a need for ongoing exchange of legal knowledge between experts in each country to help Chinese and American executives navigate each other’s markets more smoothly, he said.

USCIB Senior Vice President Rob Mulligan praised CCPIT for taking the initiative to propose the forum. “CCPIT has been an important and strategic partner to USCIB for many years,” he said, “and we greatly appreciate the long-term cooperation we have maintained through work on such areas as ATA Carnet and Green Growth.” He said the two groups would work together on a range of initiatives in the future, including a possible forum for USCIB members in Beijing.

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USCIB Will Support the China International Import Expo

Published on January 30, 2012

USCIB and the International Chamber of Commerce (ICC), the world business organization which USCIB represents in the United States, along with 30 foreign counterparts of the China Council for the Promotion of International Trade (CCPIT) and China Chamber of International Commerce (CCOIC), have confirmed their support of the China International Import Expo (CIE 2012), which will be held from March 29 to 31, 2012 in Kunshan, Jiangsu Province in China.

Starting in 2012, China will accelerate the transformation of its economic development, as well as the strategic adjustment of its economic structure and industry upgrading. Therefore, China will pay more attention to environmental protection and will expand import of technologies and products of the energy-saving and environmental protection industry. This industry is among the 7 Strategic and Newly-Emerging Industries of which China will accelerate the fostering and development in fast pace. The total volume of its investment is expected to reach RMB 3.1 trillion. The highlights on import focus on technology and equipment for processing and recycling waste, saving energy and preventing and controlling air pollution; new-energy technology and equipment; the technology and equipment for the comprehensive utilization in the recycled economy and resource regeneration; new material and composite material; new-energy material; chemical and macromolecular new material, electronic information material, etc.

The pavilion for energy-saving and environmental protection industry is an important part of the expo. With the help of the database of 100,000 main Chinese import companies the CIE 2012 will invite Chinese companies in the energy-saving and environmental protection circle to visit and purchase during the expo.

Staff contact: Justine Badimon

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China International Import Expo (CIE 2012)

Business Groups Continue to Oppose China Currency Bill

Published on October 12, 2011

In response to proposed legislation aimed at pressuring China to accelerate the appreciation of its currency against the dollar, USCIB has been working with a coalition of other trade associations, led by the U.S.-China Business Council, to oppose the bill.

The Currency Exchange Rate Oversight Reform Act would label currency manipulation as a foreign subsidy, triggering U.S. tariffs on Chinese goods.

In a September 21 letter to Congress, USCIB and over 50 trade associations emphasized the importance of balancing bilateral with multilateral pressure on China.

“In addition to continuing U.S. government efforts, our organizations support strong, coordinated and enhanced multilateral pressure through international organizations such as the G-20 and APEC to promote China’s adoption of market-determined currency and exchange rate policies,” the letter stated.

On October 11, the controversial legislation was voted through the Senate without amendment by a vote of 63-35.  One proposed amendment submitted by Senator Orrin Hatch (R – Ut.).had included a multilateral approach to pressuring China on the appreciation of its currency.

Ten Years On: China in the WTO

This year marks the tenth anniversary of China’s membership in the World Trade Organization.  In October, as we have done each year since 2001, USCIB delivered a comprehensive statement to U.S. Trade Representative Ron Kirk’s office  on China’s compliance with its WTO obligations.

USTR collects this invaluable information from the business community to assist in preparing its report to Congress on China’s WTO compliance. USCIB members provided updated information in several cross-sectoral areas as well as those affecting their specific industries.  Among the top concerns were China’s policies and practices in indigenous innovation, intellectual property rights enforcement, transparency and standards.

We thank the USCIB members who took the time to send in updates and help us prepare the statement.

The Treasury Department has announced that it will delay publication of the semi-annual Report to Congress on International Economic and Exchange Rate Policies of the U.S.’s major trading partners until later this year, to allow time to assess progress following several international meetings, including the G20 finance ministers/central banks meetings on October 14-15 and the G20 and APEC summits in November.

USCIB will continue to monitor the progress of the proposed currency legislation and work with industry associations to ensure that the voice of business is heard on the importance of a multilateral approach to China’s management of its currency.

Staff contact: Justine Badimon

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Business Groups Voice Concern Over Restrictive Chinese Innovation Rules

Published on December 10, 2009

USCIB joined a number of other leading global business associations in submitting a letter to the Chinese government in response to new rules requiring vendors to gain accreditation for their products before they can be included in a government catalog of products containing “indigenous innovation.”

These requirements could effectively close off China from innovation and technology developed overseas and does not uphold the G20’s leaders’ commitment to refrain from introducing new protectionist measures.

In other USCIB China committee news, please save the date of January 26 for the next meeting, in Paris, of the BIAC China Task Force, which will include an afternoon consultation with the OECD Informal Reflection Group on China.  Please contact Justine Bareford (jbareford@uscib.org) if you would like more information or are interested in attending these meetings.

Staff contact: Justine Bareford

Joint industry letter on Chinese innovation rules (click here for Chinese version)

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Fifth Anniversary of China in the WTO Marked

Published on January 12, 2006
L-R: Kimberly Halamar (USCIB), USCIB President Peter M. Robinson, Cheryl McQueen (Commerce Dept.), Audrey Winter (USTR) and USCIB China Committee Chair Clarence Kwan (Deloitte & Touche)
L-R: Kimberly Halamar (USCIB), USCIB President Peter M. Robinson, Cheryl McQueen (Commerce Dept.), Audrey Winter (USTR) and USCIB China Committee Chair Clarence Kwan (Deloitte & Touche)

To commemorate the fifth anniversary of China’s accession to the World Trade Organization, USCIB invited speakers from the U.S. government to New York on December 14 to assess China’s progress and the issues facing the country as it continues its integration into the global economy.

The director of the Commerce Department’s China office, Cheryl McQueen, was joined by Audrey Winter, deputy assistant U.S. trade representative for China affairs.  They provided an update on bilateral trade and investment discussions, including the U.S.-China Joint Commission on Commerce and Trade as well as USTR’s recently released report to Congress on China’s compliance with its WTO commitments.

USCIB China Committee Chairman Clarence Kwan, national managing partner for U.S. China services at Deloitte & Touche, called the discussion extremely timely, noting that the WTO anniversary coincided with Treasury Secretary Henry Paulson’s trip to China with several U.S. cabinet secretaries.  He welcomed the update on the current talks and long-term goals of this dialogue, and noted that USCIB looks forward to providing business input to these continued high-level discussions.

After the briefing, a reception sponsored by USCIB, the National Committee on U.S.-China Relations, and the Committee of 100 (and generously supported by Deloitte) brought together meeting participants as well as U.S. and Chinese government officials, including New York Chinese Consul General Liu  Biwei, to celebrate China’s five-year anniversary in the WTO.

Staff contact: Kimberly Halamar

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