Regulatory/market watch

摘要

The outbreak of a novel coronavirus in China during January 2020 is likely to impact the Chinese economy in the immediate term. Labour output and e-commerce sales will be affected, as the public avoids crowded spaces. Aggressive quarantine measures and factory closures will disrupt China's links to international trade, posing risks to supply chains. A new natural resources law will begin to take effect in September 2020, granting local governments the authority to tax up to 164 resources. It includes a long-awaited water tax, with rates based on local water resource availability. In January 2020 China and the US signed a "first phase" agreement to ease trade tensions. The risk of the deal breaking down in 2020 is high, owing partly to aggressive purchase targets that may result in renewed tariff application. Prospects for a "second phase" deal, which will focus on China's industrial policies, remain poor.