Business and Human Rights
In joining the World Trade Organization (WTO) 15 years ago, the Chinese government made commitments that were important not only for China’s commercial development around the world, but also for its development of political reforms and the rule of law at home. The Chinese economy has benefited greatly from the international rules-based system, but the Chinese Communist Party continues to reject the notion that the rule of law should supersede the Party’s role in leading the state, impeding its ability to abide by its WTO commitments and transition to market economy status.
- Transparency and Alibaba’s IPO
The Chinese government censors the media,[1] restricts foreign investment in Chinese technology companies,[2] and refuses American regulators access to auditing records of Chinese companies.[3] In September 2014, however, the Cayman Island-registered Chinese company Alibaba Group Holding Limited (Alibaba Group)[4] raised US$25 billion on the New York Stock Exchange in the largest Initial Public Offering (IPO) in history.[5] China’s sovereign wealth fund sold shares valued at approximately US$1 billion in the IPO and retained shares valued at approximately US$4 billion.[6] According to the Chinese government and official Chinese media, Alibaba and other Chinese Internet companies owe their suc
Recently major pet stores have announced they would stop selling dog and cat treats made in China following the deaths of 1,000 dogs which may be linked to pet treats from China. Chickens raised in the United States may now be shipped to China for processing before being sold in the United States. Researchers are also exploring the connection between the domestic outbreak of Porcine Epidemic Diarrhea virus with China. These developments have highlighted concerns over the effectiveness of China’s food safety regulation, the effectiveness of U.S. government regulation of imported foods from China, and the overall safety of such foods.
When China joined the World Trade Organization in 2001 it was hoped that China would strengthen the rule of law, open its markets to U.S. goods, end discriminatory trading policies, and increase transparency, bringing benefits to both the United States and China. Some 12 years later considerable concern remains over China's compliance with its WTO obligations and international trade rules generally. The state continues to play a heavy role over China's economy and to subsidize state-owned enterprises and favored industries at the expense of foreign competition. Other problems include weak enforcement of intellectual property rights, retaliation for U.S.
Amended Law Contains Provisions That Could Help Improve Consumer Protections
Transcript (PDF) (Text)
Corruption takes many forms in China, from corrupt officials at all levels using their public office for private gain and seizing land for development to corrupt state-owned enterprises gaming the system to their advantage. Corruption also continues to be among the root causes of rights abuses against Chinese citizens.
Cyber attacks from China have become a key point of contention between the United States and China. Both sides recently agreed to form a working group and hold regular talks on cybersecurity and industrial espionage, and the issue will feature prominently during President Obama and President Xi Jinping's upcoming summit in California. This hearing will examine the impact of Chinese cyber attacks on Chinese activists and human rights organizations as well as on American businesses and industries harmed by intellectual property theft.
This hearing was webcast live.
The recent bird flu outbreak, reports of dead pigs and contaminated food products, and dangerous levels of air pollution, have raised concerns among both China's own citizens and American consumers about the Chinese government's ability to cope with these problems. To what extent has China been forthcoming to its citizens and the international community about incidents involving pollution, food and drug safety, and public health hazards? What is the extent of Chinese cooperation with U.S. officials and the international community on these issues?
On January 4, 2013, the National Development and Reform Commission (NDRC) reported on its Web site that it had fined six companies a total of 353 million yuan (US$56.8 million) for participating in a cartel to fix prices of liquid crystal display (LCD) screens sold into the Chinese market. NDRC, one of the three Chinese government departments charged with implementation of China's 2008 Antimonopoly Law, is responsible for handling violations of pricing regulations, as well as activities related to pricing that violate the Antimonopoly Law or related legislation such as the 2011 Anti-Price Monopoly Provisions.