China Insurance Regulatory Commission

Dr. Jean-Marc F. Blanchard's picture

China’s Government Reform and Implications for Foreign Investors

Dr. Jean-Marc F. Blanchard
Posted: Mar 23, 2018

At present, the eyes of the foreign business community in China understandably are fixed on United States (US) President Donald Trump’s levying of tariffs on Chinese strategic goods, China’s retaliation, and the potential for the situation to escalate. While such matters warrant attention, the business community also should be alert to China’s planned government restructuring which will reduce the total number of ministries, eliminate some ministries like the General Administration of Quality Supervision, Inspection, and Quarantine, consolidate others such as the China Banking Regulatory Commission (CBRC) and China Insurance Regulatory Commission (CIRC), create new ministries like an international aid agency, and shift the oversight of some ministries.

MNCs in News-2016-12-30

China plans to open various financial services sectors to foreign investors but details and timeframes remain unclear. Regulatory pressures inside and outside China may slow or reverse somewhat the pace of Chinese outward foreign direct investment (OFDI). Conditions at home and abroad plus drags on Chinese OFDI may lead Japan to become a more prominent outward investor in 2017. Takata Corp. may settle the United States (US) Department of Justice criminal case against it. Korea’s Fair Trade Commission slaps USD $900 million fine on Qualcomm for abusing its market power. Deal by Malaysian state owned firm for a palm oil project in Indonesia raises political concerns within Malaysia as well as some environmental and labor concerns.

MNCs in the News-2016-11-24

China’s Ministry of Commerce notes that it will continue to welcome and support foreign direct investment (FDI) from the European Union (EU). Very senior Chinese Communist Party official meets with Microsoft CEO and calls for the company to share its technology with China. China’s State Administration for Industry and Commerce imposes almost a $100 million fine on Sweden’s Tetra Pak for abuse of its market position. Qualcomm’s joint venture with the Guizhou provincial government will start to produce China-customized server chips in 2018. I order to enter China, Facebook reportedly is working on a tool that would empower the Chinese government to censor content. The Committee on Foreign Investment in the United States (CFIUS) said it would recommend a Chinese investment consortium not be allowed to purchase Germany’s Aixtron. The U.S.-China Economic and Security Review Commission said Washington should take action to ban China’s state-owned firms from acquiring U.S. companies. Japan’s Itochu Corporation and Electric Power Development Co. Ltd. will provide full support for the construction of a coal-fired Batang power plant in Central Java. Japan and Argentina work to boost Japanese investment in Argentina. New China Ministry of Industry and Information battery production standard will severely limit Korean battery sales in China. China takes adverse actions against Korean financial companies to, it is believed, punish Korea for its acceptance of the THAAD system. Despite uncertainties flowing from the US presidential election result, the Indonesian Investment Coordinating Board still has faith in its investment realization targets. The Indonesia-Japanese investment relationship remains robust. Following on the heels of his efforts to court Chinese investors, Malaysia Prime Minister Najib Razak is lobbying Japanese investors to put money in higher-value added activities in his country. Vietnam welcomes foreign investors to participate in the restructuring of the country’s banking sector. Vietnam pushes for investment in the food processing sector.