China's state restructuring will have enduring impact

2018 ◽  
Keyword(s):  
Interest Groups ◽  
Foreign Aid ◽  
Content Type ◽  
Doing Business ◽  
Rubber Stamp ◽  
State Restructuring ◽  
The World ◽  
Business In China ◽  
People's Congress ◽  
Powerful Interest

Subject Reforms and appointments announced at the National People's Congress. Significance A massive restructuring of China's bureaucracy was announced at the annual meeting of China's rubber-stamp parliament this month, where a new cohort of leaders was also promoted to key cabinet positions. Impacts Several new cabinet appointees have international experience, which may improve China's ability to engage effectively with the world. Consolidating foreign aid under a new agency could result in more joined-up policy, with more powerful advocates. Doing business in China could become easier with a reduction in the number of agencies firms to deal with. Consolidating ministries into larger units could create more powerful interest groups able to assert their own agendas. If consolidated government organs can better tackle pollution and food and drug safety, this would help ameliorate major public grievances.

China issues new cybersecurity review measures

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lester Ross ◽  
Kenneth Zhou
Keyword(s):  
National Security ◽  
Strategic Alliances ◽  
Chinese Government ◽  
Self Assessment ◽  
Extensive Experience ◽  
Content Type ◽  
Foreign Companies ◽  
Foreign Products ◽  
Doing Business ◽  
Business In China

Purpose To describe and analyze the implications of the new Measures (the “Measures”) for Cybersecurity Review jointly promulgated on April 27, 2020 by twelve Chinese government departments led by the Cyberspace Administration of China (CAC). Design/methodology/approach Defines the scope of the Measures, explains the functions and obligations of critical information infrastructure operators (each, a CIIO), outlines the self-assessment and cybersecurity review process and discusses the implications of the Measures for foreign companies doing business in China. Findings The Measures impose an obligation on CII operators to apply for a cybersecurity review when they intend to procure network products and services that present or may present a national security concern. Such review will focus not only on national security and data leakage concerns, but also on supply-chain security concerns. The cybersecurity review will likely further the decoupling between China and the US. Practical implications While the Measures are not formally intended to discriminate against foreign products and services, the promulgation of the Measures will have a significant impact on foreign companies that supply network products or services to CII operators in China. Originality/value Practical guidance from lawyers with extensive experience in advising Chinese, US, European and other companies on laws and regulations related to competition, cross-border investments, joint ventures, strategic alliances and international trade matters.

Exploring changes of governance discourse of the National People’s Congress of the People’s Republic of China

2019 ◽  
Vol 15 (1) ◽  
pp. 2-20
Author(s):  
Hui-Wen Deng ◽  
Kwok Wah Cheung
Keyword(s):  
Chinese Communist Party ◽  
Political System ◽  
People’S Republic Of China ◽  
Political Agenda ◽  
People's Republic Of China ◽  
Standing Committee ◽  
Content Type ◽  
Republic Of China ◽  
Rubber Stamp ◽  
People's Congress

Purpose The National People’s Congress (NPC) of People’s Republic of China, the highest organ of state power, is popularly seen as a rubber-stamp entity. However, it has been substantially evolving its roles to accommodate the governance discourses within China’s political system over the decades. This study aims to explore the changes of governance discourse of the NPC within China’s political system through which to offer a thorough understanding of the NPC’s evolving substantial role in current China. Design/methodology/approach This study deploys a historical approach to explore the changes of governance discourse of the NPC that has seen a growing importance in China’s political agenda, as argued by this study. Findings The authors find that the NPC has been substantially evolving its role within China’s political system in which the Chinese Communist Party has created different governance discourses. Besides, the NPC and its Standing Committee have asserted its authority as a substantial actor within China’s political system. The NPC is no longer functioned as a rubber-stamp institution, though it is still popularized as a rubber stamp by many scholars. Research limitations/implications This study is a historical elaboration on the development of NPC under three governance discourses. It might be, to some extent, relatively descriptive in nature. Originality/value This study, therefore, sheds some light on a revisit on the governance discourses in current China.

Policies could damage Tanzania’s strong growth trend

2017 ◽  
Keyword(s):  
Tax Evasion ◽  
Financial Services ◽  
Growth Trend ◽  
Sharp Drop ◽  
Content Type ◽  
Doing Business ◽  
The World ◽  
Ease Of Doing Business ◽  
Tourism Revenue ◽  
Growing Population

Significance The World Bank’s 2017 Ease of Doing Business ranking shows Tanzania improving, moving up to 132nd place from 144 last year. However, an austerity drive and a crackdown on tax evasion may undermine progress. Businesses have shuttered since President John Magufuli took office, and commercial retrenchment could dampen key growth sectors including construction, telecoms and financial services. Impacts A fast-growing population of 53 million will add to an already large consumer base. A sharp drop in tourism revenue could prompt a review of taxation on the sector. Natural gas discoveries could boost revenue, but exports will only begin in the next decade.

Algerian leadership will head off military threat

2018 ◽  
Keyword(s):  
Civil Society ◽  
Interest Groups ◽  
Armed Forces ◽  
Content Type ◽  
The Past ◽  
Military Threat ◽  
The Media ◽  
Powerful Interest ◽  
The Way

Subject President Abdelaziz Bouteflika's grip on power in Algeria. Significance In the past three months, President Abdelaziz Bouteflika has dismissed ten generals in the armed forces and police. The scale of the turnover is unusual, as is the way in which the changes have been effected. The media have advanced various explanations: a cocaine-smuggling scandal, corruption charges or a routine rotation of officers. Questions have also arisen about what impact the dismissal of powerful security figures might have on the presidency itself, as Bouteflika’s supporters prepare the ground for him to secure a fifth term in an election scheduled for April 2019. Impacts A fifth term for Bouteflika will not lay to rest rivalries among powerful interest groups over the eventual succession. Activists and civil society members will organise more protests to express discontent with the presidency. If the cocaine smuggling claim is true, it may point to mafia-style networks deep within the security establishment.

Supply chain management practices and intellectual property protection in China

2016 ◽  
Vol 36 (2) ◽  
pp. 135-163 ◽  
Author(s):  
Lawrence D. Fredendall ◽  
Peter Letmathe ◽  
Nadine Uebe-Emden
Keyword(s):  
Return On Investment ◽  
Structural Equation ◽  
Management Practices ◽  
Small Sample Size ◽  
Small Sample ◽  
Equation Modeling ◽  
Great Effort ◽  
Content Type ◽  
Doing Business ◽  
Business In China

Purpose – The purpose of this paper is to investigate the strategy used by German Mittelstand companies to achieve a profitable business in China. It explores how those firms seek to reduce their risk of entry into this market. Design/methodology/approach – Survey data were gathered over the phone from individuals in the companies who were identified as knowledgeable contacts. Their responses were then analyzed using descriptive statistics and structural equation modeling. Findings – German Mittelstand firms that hire Chinese nationals in China obtain market knowledge and a higher return on investment than others. German managers’ efforts to understand the Chinese cultural norms increased the firm’s unwillingness to share information with others. This was probably because their concern about protecting their competitive secrets increased, so they shared less information with suppliers, which decreased their return on investment. Research limitations/implications – First, the small sample size limited the analysis. Second, there was low inter-rater reliability on multiple items, so these responses could not be analyzed. There is a need to further validate the survey, and obtain a larger sample to analyze alternative models. Practical implications – This suggests to the practitioner that while it may be relatively easy to start a manufacturing business in China, it requires great effort to manage their risk of losing corporate secrets to their competitors in China. Originality/value – This paper provides a unique set of data from practicing managers about the risks and gains from doing business in China. This data can be of use to both researchers and to practitioners and it provides a foundation to examine how the risk of losing proprietary knowledge to Chinese competitors affects business.

Somalia faces long road to economic reconstruction

2018 ◽  
Keyword(s):  
Private Sector ◽  
Economic System ◽  
Institutional Capacity ◽  
Government Revenue ◽  
Business Sector ◽  
Policy Reforms ◽  
Content Type ◽  
Doing Business ◽  
The World ◽  
The Government

Significance Despite the government’s genuine efforts to implement policy reforms, low to non-existent institutional capacity will continue to impede the emergence of a more formalised economic system. Immediate challenges include increasing government revenue and rebuilding the financial sector to support public services and private sector expansion. However, the government will face stiff opposition from the small but powerful unregulated business sector, who want to maintain tax-free operations. Impacts Built-up salary arrears from successive over-optimistic budgets may jeopardise the hard-won security gains needed to reap peace dividends. Agreements by airlines and telecoms to pay taxes could weaken the position of other hitherto uncooperative sectors. Somalia’s last place in the World Bank’s doing business rankings obscures the potential of the vibrant private sector.

Morocco pushes business-friendly image with new budget

2019 ◽  
Keyword(s):  
Small Businesses ◽  
Economic Policies ◽  
Foreign Exchange Reserves ◽  
Content Type ◽  
Sovereign Bond ◽  
Doing Business ◽  
Special Fund ◽  
The World ◽  
International Investors ◽  
The Government

Significance Morocco’s reputation among international investors as one of the region’s more business-friendly locations has been underlined by a steady rise in the World Bank’s ‘Doing Business’ rankings. The government has sought to reinforce this through the latest budget, including tax cuts for domestic industries. Beyond that, it also includes increases in spending on health and education, as well the creation of a special fund for small businesses. Rabat plans to issue a sovereign bond in the next few weeks to bolster foreign exchange reserves and to finance part of the deficit. Impacts The boost to health and education is in keeping with the king’s recent call for economic policies that will reduce social inequality. The bond issue will offer an acceptable level of risk for most prospective investors. Popular perceptions of a rigged system, despite positive indications of economic performance, may drive further protests.

China's NPC meeting sends policy and political signals

2015 ◽  
Keyword(s):  
Content Type ◽  
Rule By Law ◽  
Rubber Stamp ◽  
Economic Slowdown ◽  
People's Congress

Significance The National People's Congress (NPC) ran March 5-15 and the Chinese People's Political Consultative Conference (CPPCC) from March 3-13. Both bodies are routinely characterised as 'talking shops' and the NPC as a 'rubber stamp' parliament, but there is more significance to these events than that. This year's meetings come as policymakers draft the Five-year Plan that will shape the economy's 'rebalancing' in the years ahead, amid mounting fears about the depth of the country's economic slowdown. Impacts Policy confirmed at the NPC will feed into the drafting of the next Five-year Plan (2016-20) during the coming months. The configuration of power in China will transform as networks are disrupted by the anti-corruption campaign. NPC oversight and 'rule by law' are being consolidated through revisions to the Legislation Law.

Nigerian companies law faces capacity constraints

2020 ◽  
Keyword(s):  
Corporate Governance ◽  
Civil Society ◽  
Capacity Constraints ◽  
Content Type ◽  
Doing Business ◽  
The World ◽  
Ease Of Doing Business

Significance The amendment officially seeks to improve the ease of doing business by establishing a more efficient means of regulating businesses and minimising the compliance burden for small and medium-sized enterprises (SMEs). However, some interest and civil society groups, most notably religious-based organisations, have decried provisions of the new law. Impacts Besides SERAP, there is the possibility of civil actions against the CAC and the presidency by other civil society groups. The new act could help improve Nigeria’s ranking on the World Bank’s ‘Ease of Doing Business’ index. Business oversight bodies could voice their opposition to the inclusion of corporate governance provisions within the CAMA 2020.

US companies in China face more challenges

2021 ◽  
Keyword(s):  
Personal Information ◽  
Content Type ◽  
Doing Business ◽  
Self Sufficiency ◽  
Data Flows ◽  
Compliance Requirements ◽  
Market Opportunities ◽  
Business In China ◽  
Impact Data ◽  
The Impact

Significance Together with the Personal Information Protection Law passed last month, it imposes significant data protection compliance requirements on the corporate sector. These will impact data flows between China and the outside world, adding to the challenges that US companies now face when doing business in China. Impacts China's drive for technological self-sufficiency will increasingly limit market opportunities for US companies. State media's negative coverage of US businesses in China is an indication of growing protectionist sentiment. Instances of US firms moving supply-chain operations out of China are rare and are driven primarily by rising costs. An upcoming US Treasury review of the impact of sanctions could see other tactics used against China, with business implications.

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