Our Expertise
The more complicated China gets, the more valuable we become
Trade and Supply Chain
Calibrating the China footprint within Asia Pacific
With protectionism on the rise and the WTO stalled, bilateral and plurilateral trade policy is high on the agenda. Against the backdrop of the unabated escalation of the US-China strategic rivalry, the implementation of the US-China Phase I trade deal is highly uncertain. EU and China, at the same time, are negotiating a comprehensive agreement on investment (CAI) while trying to join forces to reform the WTO. Propelled by new uncertainties induced by the COVID19 crisis, China is accelerating the build-up of its own FTA network with the RCEP front and center.
As the economic integration of the Asia Pacific region is progressing, the Belt and Road Initiative yielding regional connectivity gains and China shifting towards a more domestic consumption-driven growth model, it is timely to review the Chinese market’s evolving position in regional industrial supply chains. A recent Politburo communication foreshadows China’s determination to regionalize supply chains for higher security and stability. All these dynamics impact companies that manufacture and trade in, with and from China. A holistic analysis of trade policy, China’s domestic economic policies and regulatory trends can deliver insights to mold the strategic footprint in the Asia Pacific for MNCs moving forward.
Cybersecurity
Cybersecurity Compliance and Strategy
Cybersecurity has become a major concern for Chinese regulators. Three major laws, namely the Cybersecurity Law, the Data Security Law, and the Personal Information Protection Law, are the pillars of China's cyber and data security regulatory regime after 2021.
All companies operating in China must comply with a rapidly changing and complex cybersecurity regulatory framework: Cross-border transfer rules restrict global data flows, the cybersecurity requirements of the MLPS 2.0 regime apply to anyone operating a network in China, and suppliers to critical information infrastructure operators (CIIOs) face additional requirements such as security audits and certification - to name just a few of the challenges facing international companies. China's evolving cybersecurity regulatory framework also challenges the globalized enterprise IT infrastructure and requires a strategic rethink of your IT posture in and outside of China.
Sinolytics helps clients comply with the latest cybersecurity regulations and requirements. We assess your current compliance status and help you close any gaps. However, our service does not stop at compliance, but links cybersecurity regulations to your business strategy and needs. We help you understand the implications of your IT posture under different geopolitical scenarios and help you optimize your China IT strategy, taking into account both your business needs and the mitigation of China-related risks.
Read our Cybersecurity Primer.
Digital
Digital and Technology Strategy
China’s unprecedented technological transformation and digitization is fundamentally changing the rules of the Chinese market. International companies are adjusting their technology and digital strategies to benefit from China’s rapid advances. At the same time, they need to prepare for the risks of profound technological disruption in their sectors. A key challenge is to adapt to the new realities, including intensifying competition from new market players, to stay relevant in China’s market of the future.
Sinolytics offers guidance through the labyrinth of China’s digital and technological transformation. It provides the combination of deep China knowledge, technology expertise and strategic thinking, from artificial intelligence to eCommerce, from autonomous driving to 5G.
Policy
Economic, Industrial and Technology Policy
Understanding the profound commercial implications of government policies, plans and strategies is one of the fundamental success factors for doing business in or with China. Navigating China’s intensifying industrial and technology policies, from Made in China 2025 to the Belt and Road Initiative, is one of the enduring challenges for international companies.
The daily IT-backed monitoring and analysis of policy and regulatory documents and the continuous interpretation of the Chinese government’s mid- and long-term intentions, is one of the most important backbones of Sinolytics’ services. Based on long-standing policy research experience, Sinolytics identifies and assesses policy risks as well as opportunities at an early stage, providing our clients with valuable time and advice to prepare and react.
Finance
China’s Financial System and Financial Policy
China is reforming its bank-dominated financial system to support the transition into a sustainable and innovation-driven economy. The financial sector is accelerating the opening-up process to foreign institutions and loosening capital accounts while maintaining implicit obstacles in operations.
Combining the expertise in analyzing financial policy and regulatory dynamics as well as our extensive work on analyzing the industrial or social policies underlying the financial instruments, Sinolytics provides a comprehensive solution of policy analysis for offshore investors, governmental financial institutions and onshore European players, and advises them on strategic and policy-factors for defining an effective “China” strategy. We identify and assess strategic opportunities as well as challenges for our clients over topics from Fintech, Green Finance, to interest rate liberalization and RMB internationalization.
Ratings
Social Credit System
Using increased monitoring and processing capacity enabled by big data technologies, China’s government is significantly improving its ability to implement and enforce market regulation. This means more immediate detection of non-compliance through rating mechanisms (Social Credit System), more rigorous enforcement, more severe sanctions.
Helping companies prepare for this new reality of enhanced regulatory scrutiny is one of Sinolytics’ most important services. Sinolytics experts have continuously observed and analyzed the development of China’s regulatory system for many years, building a unique expertise to support our clients to identify compliance gap in time and to effectively and efficiently close these gaps.