Chinese Ministry of Commerce: An Overview


Published on

This is a presentation I used in a graduate school class in April 2006, as a preface to visiting China.

For more information and some notes, see:

Published in: Business
1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Chinese Ministry of Commerce: An Overview

  1. 1. MOFCOM : Ministry of Commerce By Ari Herzog April 27, 2006 Suffolk University
  2. 2. Birth in March 2003 <ul><li>Born to eliminate redundancy </li></ul><ul><li>MOFTEC (formerly MOFERT) </li></ul><ul><li>+ </li></ul><ul><li>SETC </li></ul><ul><li>+ </li></ul><ul><li>SDPC </li></ul><ul><li>= </li></ul><ul><li>MOFCOM </li></ul>
  3. 3. Departments/offices <ul><li>General Affairs Office </li></ul><ul><li>Personnel, Education and Labor Department </li></ul><ul><li>Policy Research Office </li></ul><ul><li>Law Department </li></ul><ul><li>Planning and Finance Department </li></ul><ul><li>Asian Affairs Department </li></ul><ul><li>Northwest Asian and African Affairs Department </li></ul><ul><li>Europe Department </li></ul><ul><li>America and Oceania Department </li></ul><ul><li>Taiwan, Hong Kong and Macao Office </li></ul><ul><li>International Economic and Trade Relations Department </li></ul><ul><li>WTO Department </li></ul><ul><li>Foreign Trade Department </li></ul><ul><li>Machinery and Electric Equipment Import and Export Department </li></ul><ul><li>Scientific Development and Technological Trade Department </li></ul><ul><li>Market System Department </li></ul><ul><li>Commerce Reform and Development Department </li></ul><ul><li>Market Operations Regulation Office </li></ul><ul><li>Foreign Investment Department </li></ul><ul><li>External Aid Department </li></ul><ul><li>External Economic Cooperation Department </li></ul><ul><li>Import and Export Fair Trade Bureau </li></ul><ul><li>Industrial Damage Investigation Bureau </li></ul><ul><li>Information Technology Department </li></ul><ul><li>Foreign Affairs Department </li></ul>
  4. 4. Responsibilities <ul><li>Formulates and coordinates guidelines, laws, policies, regulations, plans, strategies, and administration of domestic and international trade and international economic cooperation </li></ul><ul><ul><li>foreign investment </li></ul></ul><ul><ul><li>foreign government loans and assistance programs </li></ul></ul><ul><ul><li>overseas projects </li></ul></ul><ul><ul><li>technology trade with foreign countries </li></ul></ul><ul><ul><li>tariffs, taxation, exchange rates, credit, and pricing </li></ul></ul><ul><ul><li>economic relations with Taiwan, HK, and Macau </li></ul></ul>
  5. 5. Ministers
  6. 6. January 2006: FDI in China <ul><li>FDI up 11% in Jan 2006, from Jan 2005 </li></ul><ul><ul><li>$4.55 billion USD </li></ul></ul><ul><ul><li>HK, British VI, Germany led investment </li></ul></ul><ul><ul><li>15 EU countries grew by 70.8%, US by 19.7% </li></ul></ul><ul><li>3,044 new foreign firms set up shop </li></ul><ul><ul><li>14.5% decrease </li></ul></ul>
  7. 7. Future investments <ul><li>PricewaterhouseCoopers survey of CEOs in Jan 2006 </li></ul><ul><ul><li>55% to invest in China now through 2009 </li></ul></ul><ul><ul><ul><li>75% want to win Chinese customers </li></ul></ul></ul><ul><ul><ul><li>48% want to decrease labor costs </li></ul></ul></ul>
  8. 8. Potential tax rate change <ul><li>Today, domestic firms pay income tax rates of 33%, foreign firms taxed at 15% </li></ul><ul><li>National People’s Congress to discuss in 2006 to unify the rates. </li></ul><ul><li>Also, plans for future tax breaks. </li></ul>
  9. 9. China support of key export brands <ul><li>2003: 65% market share for top 10 brands of 80 consumer products </li></ul><ul><li>80% market share for top home appliance brands </li></ul><ul><li>20% of export enterprises had own brands; < 10% of total exports </li></ul><ul><li>Lack of IPR in tech firms </li></ul>Source: Hong Kong Trade Development Council website -
  10. 10. <ul><li>190 domestic export brands fostered in 2005-2006: includes Haier, Gree, Xoceco, Galanz, Jialing, Huawei, ZTE, Ordos and Threegun </li></ul><ul><li>71 from mechanical and electrical industry </li></ul><ul><li>55 from textile industry </li></ul><ul><li>40 from light industry, arts and crafts </li></ul><ul><li>10 from food, native produce and animal by-product industry </li></ul><ul><li>7 from metals, minerals and chemicals industry </li></ul><ul><li>7 from pharmaceutical and health food industry </li></ul>
  11. 11. WTO: China #1 exporter by 2011 <ul><li>2005 world trade volume was > $10,000 billion USD, 13% increase over 2004 </li></ul><ul><li>Largest export increase by Russia (37%), China (28%), and Brazil (23%) </li></ul><ul><li>Top 3 goods export countries were Germany, US, and China </li></ul><ul><li>WTO prediction that China would take the place of Germany as the largest goods exporter in 2007 if China maintained 30% export increases </li></ul><ul><li>WTO prediction that China would be #1 goods exporter by 2010 at latest </li></ul>Source: Network Center of MOFCOM, 4/20/06
  12. 12. MOFCOM Online Resources <ul><li>China Commodity Net </li></ul><ul><ul><li>Allows free searches for info of 600,000 Chinese enterprises and 2.2 million products </li></ul></ul><ul><li>World Importers Net </li></ul><ul><ul><li>Free. Promotes intl trade by allowing Chinese and foreign firms to upload pics and descs of products to buy/sell </li></ul></ul><ul><li>Bizmatching </li></ul><ul><li>Invest in China </li></ul><ul><li>MOFCOM’s US Commercial Counselor (at Embassy) </li></ul>