Intensifying nationwide environmental enforcement is affecting foreign company supply chain management, compliance, and reporting procedures in China. New rounds of environmental inspections have already led to increased supply chain disruption and, in some cases, factory shutdowns for months. This pervasive nationwide trend has important implications for companies as they approach environmental compliance.
Chinese regulations on tendering and bidding practices published by the Ministry of Finance (MOF) in July are a promising sign for US pharmaceutical and medical device manufacturers that government procurement behavior will be better regulated to guarantee consideration of quality alongside price. However, true improvement for the industry will require regulators to faithfully implement the law and refrain from unofficial practices such as local favoritism, which sometimes plague procurement processes.
Facing ongoing pollution challenges and a push to diversify energy sources, China’s energy planners kicked off 2017 by announcing an array of 13th Five-Year Plans (13FYPs). Offering quantifiable short-term goals for limiting reliance on coal in favor of oil and gas, these plans collectively focus on emissions cuts, renewable energy development, and improved energy industry efficiency, while encouraging technology solutions such as data centers.
The Chinese healthcare sector, which accounted for 6 percent of the country’s GDP in 2016, is expected to capture a 10 percent share in the coming years. Racing to establish a modern system of coverage, services, and products to accommodate the world’s largest population and fastest growing economy, China faces a number of development challenges. As China increasingly makes use of foreign products, services, and expertise to accomplish its reform goals, foreign companies are in a position to advance China’s reform goals in the healthcare sector, if allowed market access.
China’s energy planners seek to increase production, distribution, and consumption of renewable energy as a means to diversify energy supply. However, as China attempts to transition from coal to other energy sources, it struggles to utilize existing renewable capacity. This inefficiency, caused by overcapacity and grid limitations, has hindered the country’s ability to achieve renewable sector development goals.
As the world braces for an expected shift in US climate policy under Trump, China will suddenly be in position to take the lead in the global fight against climate change. This is a complex proposition, as China has proven both its impressive renewable energy development capabilities, as well as its current inability to control pollution.
Growing public dissatisfaction toward rampant pollution in China is putting pressure on Beijing to craft a national development agenda that more comprehensively takes into account environmental considerations.
Facing surmounting challenges, China seeks to revise its environmental trajectory, determined to smoothly and successfully transition from an overdependence on fossil fuels—particularly coal—to an embrace of clean energy.
As China braces for an uncertain economic future, the Chinese Communist Party (CCP) is furiously ushering in a pro-government campaign that provides the Party a rejuvenated degree of authority. Yet, the most distinct aspect of this movement has been the vivid face of this power reconsolidation campaign—the face of the Party leader himself, Chinese President Xi Jinping.
To best understand the reasons behind China’s wild ride in the stock market during the initial stages of 2016, it is important to recognize that this instability is a significant reflection of a broader structural trend with regard to the country’s economic future.