For anyone who thought consutructing a JV in China was difficult, here is a story for you.
With the NPC now half complete, the curtain was brought up and 5 new super ministries have been unveiled:
- Ministry of Industry and Information
- Ministry of Human Resources and Social Security
- Ministry of Environmental Protection
- Ministry of Housing and Urban-Rural Construction
- Ministry of Transport
and according to this AFP article:
Under the new system, China’s cabinet, or State Council, will have 27 ministries and commissions, one less than before. No time line was given for when the reformed cabinet would come into effect.
With that in mind, I would like to prepare every reader who is invested in, or looking to invest in, that what we are going to witness is pure gridlock as these groups come together. When we met last month to discuss the draft Energy Law, we looked at the structure of it, and there were 13 ministries/ 2 committees involved.. and even if it were pass tomorrow, it would still take years for the organization to come together. YEARS
It is still too early to really predict the level of chaos these integrations will create, and it is going to be hard to judge what the products of the integration will look like, but I have a strong suspicion that once integrated we will see a much higher level of enforcement on many fronts…. especially when it comes to the environment
One ministry I would like to pull out in a later post (once I get my hands on more information), will be with the Ministry of Transport. China’s Logistics industry is currently running at 20% GDP, double the U.S. or E.U. markets… so reducing will be a priority as planning of networks can be centralized…. theoretically.
With that, the only value I can really add is just for everyone to push their projects through as soon as possible. If your project is caught up in the middle of the integration, it will create issues…. people will move, standards/ regulations may conflict, etc.
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