TABLE OF CONTENTS Chapter Page I. Commercial Overview I A. U.S.-China Trade 1 B. Major Business Opportunities 2 C. Exploiting the Opportunities 3 D. Major Roadblocks to Doing Business 6 II. Leading Trade Prospects for U.S. Business II III. Economic Trends and Outlook III A. Major Trends and Outlook 1 B. Principal Growth Sectors 3 C. Government Role in the Economy 4 D. Balance of Payments Situation 5 E. Trade and Investment Barriers 6 F. Labor Force 7 G. Infrastructure Situation 9 H. Major Infrastructure Projects 9 IV. Political Environment IV V. Marketing U.S. Products and Services V A. Distribution and Sales Channels/Use of Agents and Distributors 1 B. Licensing 2 C. Franchising 2 D. Establishing an Office 2 E. Establishing a Chinese Subsidiary 3 F. Selling Factors/Techniques 4 G. Advertising/Trade Promotion 4 H. Pricing Product 5 I. Sales Service/Customer Support 5 J. Selling to the Government 6 K. IPR Protection 6 L. Need for Local Professional Services 9 VI. Trade Regulations and Standards VI A. Tariffs and Import Taxes 1 B. Customs Valuation 2 C. Import Licenses/Quotas 2 D. Export Controls 4 E. Import/Export Documentation 6 F. Temporary Entry 6 G. Labeling, Marking Requirements 7 H. Prohibited Imports 8 I. Standards 8 J. Free Trade Zones/Warehouses 10 K. Special Import Provisions 11 L. Membership in Free Trade Arrangements 12 VII. Investment Climate VII A. Openness to Foreign Investment 1 B. Conversion and Transfer Policies 3 C. Expropriation and Nationalization 4 D. Dispute Settlement 4 E. Performance Requirements/Incentives 6 F. Right to Private Ownership and Establishment 8 G. Protection of Property Rights 8 H. Regulatory System: Laws and Procedures 10 I. Efficient Capital Markets and Portfolio Investment 11 J. Political Violence 12 K. Bilateral Investment Agreements 12 L. OPIC and Other Investment Insurance Programs 13 M. Labor 13 N. Foreign Trade Zones/Free Ports 15 VIII. Trade and Project Finance VIII A. Banking System 1 B. Foreign Exchange Controls 1 C. General Financing Availability 2 D. Financing Exports/Methods of Payment 3 E. U.S. Export Financing and Insurance 5 F. Project Financing 5 G. U.S. Banks in China 5 IX. Business Travel IX A. Business Customs 1 B. Travel Advisory and Visas 2 C. Business Hours and Holidays 3 D. Business Infrastructure 3 Appendices A. Country Data B. Best Prospects C. U.S. and Country Contacts D. Market Research E. Trade Event Schedule