In the News: China-US Trade Talks; e-Cigarette Regulation; and More Financial Markets Access
July 29, 2019 | BY
Marilyn RomeroOnce again, high-level trade officials from the U.S. and China are back together; China plans to regulate e-cigarettes and vaping over fears of an addiction epidemic; and 11 measures have been introduced to open up financial market access and to scrap foreign shareholding restrictions.
China, US to resume trade negotiations
The White House said high-level trade officials from China and the United States will return to the negotiating table to resume talks aimed at improving the trade relationship between the world’s two largest economies. The two-day talks, which will begin on July 30, will this time be held in Shanghai instead of Beijing, and will be attended by U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lightizher. Vice Premier Liu He will lead the Chinese team, according to a White House statement.
The discussions will cover a range of issues, including intellectual property, forced technology transfer, non-tariff barriers, agriculture, services, the trade deficit and enforcement, the White House said. U.S. President Donald Trump pledged to postpone a fourth round of tariffs during his meeting with Chinese President Xi Jinping in June, paving the way for the resumption of negotiations that broke down in May.
China mulls e-cigarettes regulation
China has announced plans to regulate electronic cigarettes, or vaping devices, to control a new gateway addiction in a country with over 300 million tobacco-smokers. While battery-operated vaping has already exploded in the United States and elsewhere, it is not yet very popular in China and the Chinese government wants to stave off a possible mass addiction.
The National Health Commission (NHC) said it plans to regulate e-cigarettes through legislation to address critical concerns over the product’s harmful effects. Studies have shown the aerosol generated by e-cigarettes contains toxic elements, and various additives in the products pose health risks to the users, said Mao Qunan, head of the planning department of the NHC. While still low, vaping usage has doubled in China since 2015 and is higher among young people, with those aged 15 to 24 the highest users, a survey by the Chinese Center for Disease Control and Prevention said. At least 20 e-cigarette companies in China have raised funding since the beginning of 2019, according to public data.
Access to financial markets expanded with 11 new measures
China has announced 11 measures to further open up the financial sector and scrap foreign shareholding limitations in securities, asset management and futures firms in 2020, in its latest move to help bolster and stabilize growth. Of the 11 measures, which are being introduced one year ahead of schedule, four are related to the insurance sector, three cover the bond sector, two are linked to wealth management, and two are connected with securities business.
Under the new rules, China will allow foreign institutions to conduct credit rating business with all types of bonds in China’s interbank and exchange bond markets, said the State Council’s Office of Financial Stability and Development Committee. Foreign brokerages will also be allowed to serve as lead underwriters for bond offerings in the interbank market. The new reforms are the latest measures introduced to open up markets since Premier Li Keqiang said in July that China will allow majority foreign ownership of securities and life insurance firms in 2020.
More from CLP: Shanghai-London Stock Connect Goes Live With Huatai Securities Debut; Ministry of Finance, Tentative Measures for Filings in Connection with the Engagement by Foreign Accounting Firms in the Auditing of Financial Reports Relating to the Offering of Bonds on the National Interbank Bond Market by Foreign Institutions; In the News: China, UK Plan Bond Connect; Immigration Rules Ease; and Lufax Quits P2P Lending
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now