China’s Ministry of Commerce issued an urgent circular banning time-limited sales promotions in shops following a deadly stampede at a Carrefour outlet. Nov. 12, Beijing municipal government launched a check of big chain stores and supermarkets in Beijing. Four kinds of problems exist in most stores in Beijing. Find out what these problems are, according to the Ministry, as published in the AmCham-China Wire.

The People’s Government of Beijing’s Chaoyang District (PGBCD)  AmCham-China marked the one-year anniversary of the “Chaoyang Model Anti-Copyright Infringement and Piracy-Free Zone” on November 20. The goal of the project is to protect legitimate markets, promote the merits of genuine products, and increase the awareness of intellectual property rights (IPR) protection.  AmCham-China member companies News Corp/20th Century Fox, Microsoft, NBC-Universal, Time Warner, and Warner Bros participated in the effort.  Several public outreach and educational campaigns emphasizing the importance of respecting IPR were successfully implemented during the first year.

David Kay from Microsoft China spoke at the event marking the anniversary and said there is a many pronged strategy to fight against IPR infringements. He said the first year’s cooperation efforts focused on   education and publicity, legitimate distribution channels,  coordinated law enforcement efforts, and attention from both China and the U.S.

David Kay’s speech and AmCham-China’s press release about the event can be found on the AmCham site.

Vice Premier Wu Yi received a standing ovation before and after her keynote speech November 23 during AmCham-China’s Eighth Annual Government Appreciation Dinner at the China World Hotel. The crowd of nearly 800 AmCham members, guests and high ranking government officials from the U.S. and China, were treated to the words of the woman that Forbes Magazine recently described as one of the most powerful in the world. She noted that this year’s dinner theme of “Building Bridges” is an excellent metaphor for the relationship AmCham has with the U.S. and Chinese governments and business communities. The Vice Premier also used this occasion to deliver a message to the international community that China will remain open to foreign investment, a policy that her government has embraced in recent years.

Get more details about the event on the AmCham-China site. 

In other Wu Yi news, the Vice Premier says food safety is a shared problem and the responsibility of all countries. Speaking at the High-Level International Food Safety Forum in Beijing, Wu said she hopes that developed countries provide more help to developing countries to raise their standards, improve food production technology and strengthen supervision.

The AmCham-China Wire has more.

China has drafted executive regulations for a new corporate income tax law that will ‘harmonize’ the domestic and foreign rates. The final draft, which came out of the Second International Taxation Summit 2007 recently held in Shanghai, has been submitted to the State Council for approval. The results are expected to be announced next month. The AmCham-China Wire has details on the proposed rates.

It has come to our attention that re-entry rules are now being enforced for foreigners living in Beijing. According to a public security office in Shunyi and independent reports, when people leave the country and show their passport on their way out, it triggers the police database to change their status to ‘away.’  Upon their return to Beijing, they are required to notify their local police that they are back. There is conflicting information about who is required to follow these new rules; holders of temporary residence cards, permanent cards, or both.  This was first reported by a business consultant living in Changping.
“Beijing police now require foreign residents to register again for a
temporary residence card at the local police station within 24 hours of returning from each trip abroad. This requirement applies even if the temporary residence permit has not expired. 

So, if I have a residence permit valid for a year and go abroad 10 times in a year, they now require me to register with the local police 10 times. This applies to each re-entry into China. Apparently the border police are now networked to the local police, and beginning in July your exit from China will trigger a notice to the local police who will automatically revoke your temporary residence card until you re-register.

This is in addition to the work and residence permits which are issued by the municipal labor bureau and police, and which are valid for a year or two. This regulation has been on the books since the opening of China, but it has never before been interpreted in this manner. In the past the temporary residence card was renewed for the same length of time as the residence permit.  With this new interpretation they can basically revoke your right to stay in your home by not allowing you to re-register — even if you have a valid temporary residence permit for a year residence, any exit from China within that year will void that residence permit and require re-registration. This may be simply preparations leading up to the Olympics or the Congress, but it may mean something more…”

The U.S. Embassy reports:
“The Exit and Entry Administration of Beijing Public Security Bureau was called and it has been confirmed that there is NO change in the policy.  A holder of a (long term) Residence Permit which is issued to long term visa ( Z visa, long term F visa, etc.), does NOT need to register with the local police if he/she does not change the place of residence after his/her trip.  A holder of a TEMPORARY Residence Registration Card has to register with the local police station after each trip because the card is only valid for the current trip of a short term visa (L visa, short term F visa) holder staying in a place other than a hotel. Once the holder of it leaves his present place of stay/residence, let alone leaves China, the card is NOT valid. So, he/she should register with the local police station each time he/she moves to a new place or re-enters China. The card is not permanent, but only temporary.”   

However, calls to the Shunyi public security office revealed that both permanent and temporary residency card holders are required to follow this police-notification rule. It is not clear how foreigners are supposed to know about these regulations or what consequences people face if these rules are not followed.
Does anyone else have information about this?

A select group of  China-based senior executives from top U.S. companies attended a private briefing to discuss the potential impact of the 17th Party Congress leadership changes to the investment and business environment in China.Speaking at the briefing titled “AmCham-China Briefing & Roundtable Re: Impact of Party Congress and Leadership Changes on the Investment Environment,” were governmental issues experts from the Public Affairs Department of Powell Tate, the public affairs arm of Weber Shandwick. 

Brad Jaffe, vice president for  China affairs at Powell Tate, and John Russell, executive vice president for Asia Pacific and Beijing lead the thought-provoking discussion.

They spoke about topics of vital importance to those doing business in China including the shift of growth to the service sector, the further development of the high-tech sector, the attempts to build Chinese MNCs, and the evolving role of SOEs and NDRC. 

A digital copy of the presentation is available for AmCham-China members. 

Squire Sanders & Dempsey L.L.P. and AmCham-China co-hosted the October 25 briefing and roundtable, which was attended by 20 senior business executives.

Chairman James Zimmerman has been nominated by Lenovo Group to carry the 2008 Olympic Torch as part of the celebrations leading up to the 2008 Beijing Olympic Games. “His unique China experience, his social influence and the contributions he has made to the community where he has lived and worked over the past nine years,” is what convinced the Lenovo Group that Chairman Zimmerman is the right man for the job.  Once the Beijing Organizing Committee for the 2008 Olympic Games (BOCOG) gives its final approval, he’ll carry the flame during the Olympic Torch Relay next July in Datong, Shanxi Province.

Lenovo Group is a worldwide partner of the 2008 Olympic Torch Relay event. With the slogan of “Light the Passion, Share the Dream,” the 2008 Olympic Torch Relay will be the largest event of its kind in the history of the Olympics Games. The torch, designed by Lenovo Group, will reach 21 international cities and will traverse five continents.

Following the international segments, the Olympic flame will enter Mainland China on May 4, 2008. The Olympic flame will literally touch every corner of China including all provinces, autonomous regions and municipalities. During the Olympic Flame’s journey through China, it will scale the highest mountain in the world - Mt. Qomolangma (Mt. Everest).

Chairman Zimmerman was thrilled to be chosen by Lenovo Group. “This is quite an honor not only for me, but also for all the American companies and individuals doing business in China. It has been a pleasure over the years to be both a witness and participant in Beijing’s rise as a world class city. I look forward to carrying the torch to share the joy and vision of the Olympics with my Chinese friends.”

The U.S. Chamber of Commerce recently released an unofficial English translation of the National Development and Reform Commission’s  (NDRC) Catalogue Guiding Foreign Investment in Industry. This copy, courtesy of the U.S. Chamber, is available on the  AmCham-China site for members only. 

Compiled by the (NDRC), the catalog provides information about areas where the Chinese government is currently encouraging foreign investment and provides insight into further areas of growth. AmCham-China members should take note of the sectors where foreign investment is welcomed or restricted because it may affect how business is done in China in the future. A pdf of the Chinese-language version of the catalog is also available. 

The NDRC is a macroeconomic management agency under the State Council of the PRC, which studies and formulates policies for economic and social development, maintains a balance of economic aggregates, and guides the overall economic system restructuring.

The skies between China and the U.S. are opening up and AmCham-China celebrated by giving away vacations. Party-goers at the spectacular new JW Marriott waited expectantly to see who among them would take home the top prizes. American Airlines, Continental Airlines, Delta Air Lines, Northwest Airlines and United Airlines each offered up a pair of round-trip tickets on their new routes and JW Marriott provided accommodations at each of the U.S. destinations.

In addition to top executives from all the airlines, the November 7 event was attended by various government representatives, including the Federal Aviation Administration (FAA), the U.S. Department of State’s Foreign Commercial Service, as well as the Civil Aviation Administration of China (CAAC). Others who hope to benefit from the additional business opportunities expected to be generated by these new routes, also came out.

The Chinese media picked up the news of the event. The Beijing Morning Post wrote an article which was posted on Sina.com’s finance page. CCTV featured a video taped interview with AmCham-China president Mike Barbalas at the celebration.

As almost all of the U.S. ex-pats living in the Middle Kingdom know by now, regulators from the U.S. and China recently announced six new routes between the countries. Two of them, Delta’s nonstop flight between Shanghai and Atlanta, and United’s daily nonstop flight between Guangzhou and San Francisco, have received final approval for take-off and will begin service in the spring of 2008.

The additional four daily nonstop flights; Northwest’s Shanghai-Detroit route, Continental’s Shanghai-Newark route, American’s Beijing-Chicago route, and US Airways’ Beijing-Philadelphia route, are all scheduled for departure in 2009. These flights are expected to get the final green light in the coming months after further public comment.

The American Chamber of Commerce in China held its third CEO forum of the year on November 1 at Beijing’s Swissotel. Richard Edelman, president and CEO of the award-winning PR firm Edelman, spoke about the importance of corporate social responsibility (CSR) and social engagement in the global marketplace.  As the top man at the world’s largest independent public relations firm, Edelman is well versed in the meaning and significance of CSR. He gave the fifty-person audience insights into ways of building reputations as good corporate citizens while achieving business goals.  

Edelman said that CSR is not about philanthropy. It is about business and being socially responsible helps to improve a brand’s reputation, which in turn improves its business. 

“You can’t buy your reputation. You have to act to build your reputation. Be it, don’t buy it,” says Edelman.¼br> He went on to talk about the development of non-governmental organizations (NGOs) and how for-profit companies can work with them.  The discussion also surveyed changes in China’s international business climate including the growth in the number of NGOs and the Chinese government’s focus on social issues, such as environmental protection and conservation. ¼br> A lively Q&A session followed Edelman’s speech with many AmCham-China members offering examples from their own business dealings about ways of addressing the issue of CSR in China.¼/p>