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China Railway Technologies Study Tour China Railway Technologies Study Tour BUSINESS BRIEFING Thursday, May 23, 2019 • 9:30 A.M.–4:30 P.M. Hyatt Centric Magnificent Mile Hotel • Chicago, IL CONNECT WITH USTDA AGENDA China Rail Technologies Study Tour Business Briefing to U.S. Industry Hosted by the U.S. Trade and Development Agency (USTDA) Thursday, May 23, 2019 ____________________________________________________________________ 9:30 - 10:00 a.m. Registration - Lakeshore Ballroom (3rd floor) 9:55 - 10:00 a.m. Administrative Remarks – KEA 10:00 - 10:10 a.m. Welcome and USTDA Overview by Ms. Alissa Lee - Country Manager for East Asia and the Indo-Pacific - USTDA 10:10 - 10:20 a.m. Comments by Mr. Dan Kim - Senior International Trade Specialist - U.S. Commercial Service, Chicago 10:20 - 10:30 a.m. Introduction of American Rail Working Group (ARWG) by Ms. Ida Peng, Senior Commercial Specialist, U.S. Embassy Beijing 10:30 a.m. - 12:05 p.m. Delegate Presentations 10:30 - 11:00 a.m. Presentation by Mr. Zhang Dayong - Deputy Director-General, Locomotive & Car Department, China Railway (CR) 11:00 - 11:10 a.m. Questions and Answers 11:10 - 11:25 a.m. Tea/Coffee Break 11:25 - 11:55 a.m. Presentation by CR 11:55 a.m. - 12:05 p.m. Questions and Answers 12:05 - 12:30 p.m. Introduction of Delegates 12:30 - 12:40 p.m. Introduction of U.S. Participants 12:45 - 1:45 p.m. Networking Luncheon - St. Clair Ballroom 2:00 - 4:00 p.m. One-on-One Meetings between Chinese delegates and U.S. Industry Representatives - Lakeshore Ballroom 4:30 p.m. End of Program LIST of DELEGATES LIST of DELEGATES 张大勇 王子健 Mr. ZHANG Dayong Mr. WANG Zijian Deputy Director-General Engineer Locomotive & Train Department Technological Innovation and Equipment China Railway (CR) Planning Division, Development and Reform No. 10 Fuxing Road, Haidian District, Beijing Department 100844, China China Railway (CR) Tel: +8651841823 No. 10 Fuxing Road, Haidian District, Beijing [email protected] 100844, China Tel: +861051844921 黄成荣 [email protected] Mr. HUANG Chengrong Deputy Director 郑锐 Locomotive & Train Technology Division, Ms. ZHENG Rui Locomotive & Train Department Deputy Director China Railway (CR) Allocation and Management Division, No. 10 Fuxing Road, Haidian District, Beijing Material and Equipment Department 100844, China China Railway (CR) Tel: +8651840873 No. 10 Fuxing Road, Haidian District, Beijing [email protected] 100844, China Tel: +861051843575 黄毅 [email protected] Mr. HUANG Yi Deputy Director 李德明 Freight Train Management Division, Mr. LI Deming Locomotive & Train Department Director China Railway (CR) General Affairs Division, International No. 10 Fuxing Road, Haidian District, Beijing Cooperation Department, China Railway 100844, China (CR) Tel: +8651841764 No. 10 Fuxing Road, Haidian District, Beijing [email protected] 100844, China Tel: +861051844375 荣长生 [email protected] Mr. RONG Zhangsheng Deputy Director 闫力斌 Manufacture Supervision and Overhaul Mr. YAN Libin Division, Locomotive & Train Department Director China Railway (CR) Budget Management Division, Finance No. 10 Fuxing Road, Haidian District, Beijing Department, China Railway (CR) 100844, China No. 10 Fuxing Road, Haidian District, Beijing Tel: +861051842693 100844, China [email protected] Tel: +861051846881 [email protected] 邢东 林晖 Mr. XING Dong Mr. LIN Hui Chief Engineer Deputy Chief Engineer China Railway Taiyuan Group Co., Ltd. Locomotive and Car Research Institute No. 185 JiansheBei Road, Taiyuan, Shanxi, China Academy of Railway Sciences Corp., China Ltd. (CARS) Tel: +863512692361 No. 2 DaLiuShu Road, Haidian District, [email protected] Beijing, China Tel: +861056972191 张国顺 [email protected] Mr. ZHANG Guoshun Vice President 王新锐 China Railway Xi’an Group Co., Ltd. Mr. WANG Xinrui No. 33 YouYiDong Road, Beilin District, Deputy Director Xi’an, Shaanxi, China Locomotive and Car Research Institute Tel: +862983822591 China Academy of Railway Sciences Corp., [email protected] Ltd. (CARS) No. 2 DaLiuShu Rd., Haidian District, 高军 Beijing, China Tel: +861051874155 Mr. GAO Jun [email protected] Director Locomotive Maintenance Division, China Railway Jinan Group Co., Ltd. 张惟皎 No. 2 Zhangqian Road, Tianqiao District, Ms. ZHANG Weijiao Jinan, Shandong, China Deputy Director Tel: +8653182422813 Computing Technology Institute [email protected] China Academy of Railway Sciences Corp., Ltd. (CARS) No. 2 DaLiuShu Rd., Haidian District, Beijing, China Tel: +861051893795 [email protected] ARWG 彭爱群 Ms. PENG Aiqun (Ida) Senior Commercial Specialist/ARWG Executive Director U.S. Embassy Commercial Section, China No. 55 An Jia Lou Road, Chaoyang District, Beijing, China 100600 Tel: +8610 85313947 Mobile: +8613501178266 [email protected] CHINA Country Commercial Guide Search: Doing Business in China Market Overview - Last Updated: 3/28/18 China’s economic and demographic scale make it a cannot miss market for many companies, but the country faces growing economic headwinds and American companies report increased pessimism about their prospects in the market. In 2016, China experienced its lowest economic growth rate in more than a quarter century with real GDP growth decelerating to 6.7%. Although economic indicators in late 2016 [and the first half of 2017] suggest a short-term cyclical upturn may be underway, many economists remain concerned about China’s medium-term prospects for economic growth due to the slow pace of economic reforms and a failure to bring corporate debt levels under control. China’s 13th Five-Year Plan (2016-2020) calls for ambitious policy reforms in order to “comprehensively build a moderately prosperous society” by doubling 2010 GDP and per capita incomes by 2020. This will require China to maintain an average of 6.5% annual GDP growth over the plan’s five-year period (2016-2020). Achieving this growth without further exacerbating the build-up in debt will be a major challenge for the Chinese leadership, requiring significant policy adjustments that could impede short-term growth and be opposed by powerful vested interests. U.S. good exports to China in 2016 were $115.8 billion, down slightly from the previous year. U.S. exports of services to China were an estimated $45.4 billion in 2015 (the latest data available), which is over 400% higher than 2005 levels and approximately 800% higher than the year prior to China’s WTO accession in 2001. The United States had a services trade surplus of approximately $37.4 billion in 2016, which is an increase of 25% from the previous year. While China’s leadership has, in response to increasing global concerns about Chinese economic policy, repeated long-standing commitments to gradually opening China’s market to foreign participants, little tangible progress has been made in recent years. Indeed, foreign companies report growing concerns about the business climate in China. China continues to rely upon industrial policy tools – including subsidies, market access restrictions, pressures to transfer technology, and other support for domestic competitors – to drive the economy, calling into question the ability of foreign firms to operate on a level playing field in the market. Furthermore, Communist Party control over SOEs, non-government organizations, and think tanks has increased over the last year. The United States continues to vigorously engage Chinese counterparts to push for a more balanced and fair bilateral economic relationship. Nevertheless, significant market potential exists for foreign companies, particularly those operating in industries such as energy efficiency, clean technology, and healthcare, where critical Chinese needs provide an opportunity for mutual benefit. Market Challenges China is a challenging place to do business. According to the American Chamber of Commerce in China (AmCham), in 2016, American businesses in China faced headwinds arising from slowing economic growth, inconsistent and generally unfavorable interpretation of regulation, growing pressures from domestic industrial policy, and rising costs of doing business. AmCham’s most recent member survey reported that 81 percent of respondents felt foreign businesses are less welcome in China than before. Likewise, less than three-quarters of U.S. China Business Council member companies have an optimistic five-year outlook, the lowest total over the past decade. Day to day business operations present a variety of obstacles. The World Bank in its Ease of Doing Business Report ranks China 78th out of 190 countries with respect to opening and running a business while complying with local regulations. For starting a business, the World Bank ranked China 127th, reporting that starting a business requires at least 11 procedures in Shanghai and Beijing that average more than 30 days to complete. Despite significant Chinese government efforts to streamline bureaucracy and reduce red tape, foreign companies continue to complain about administrative procedures, especially with respect to registration and licensing. China also continues to pursue industrial policies that seek to limit market access for imported goods, foreign manufacturers, and foreign services providers, while offering substantial government guidance, resources, and regulatory support to Chinese industries. The principal beneficiaries of these policies are state-owned enterprises, as well as other favored domestic companies attempting to move up the economic value chain. Provincial and local governments often have an ownership stake in private companies, which can result in government support. Foreign enterprises report that Chinese government officials
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