The Chinese Men's Cosmetic Market: Guangzhou, Hong Kong and ...

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Intellectual property rights
Since joining the World Trade Organization (WTO), China has followed the
agreement to protect companies’ property. However, China has a large problem with
counterfeit products entering the market. To protect a product properly, a company must
register patents with China’s State Intellectual Property Office (http://www.sipo.gov.cn),
and trademarks with the Chinese Trademark Office (found locally). Both systems are on
a “first-file basis,” meaning the first to apply and provide evidence will receive the
protection. Any party found guilty of violating laws related to intellectual property rights
will be fined and may be further prosecuted depending on the severity of the violation
(U.S. Department of Commerce International Trade Administration).
Import controls
The country has implemented import tariffs for all foreign cosmetics in
accordance to the World Trade Organization standards. As previously stated, importing
from Hong Kong is an exception to this standard regardless of the country of origin. As
of 2009, tariffs were lowered to 6.5% with an additional 15% for hair/nail care products.
Any color product automatically obtains up to an additional 10% to the initial tariff
(Pisacane). After all requirements have been met for importing cosmetics, the prices
could be up to 50% more than the initial value of the products. As of June 2011, in order
to reduce this large price increase which will in turn promote more sales in China, the
tariffs will be reduced to 2%-15% (Dayang). CCC Certification is only for use on
electrical products. This will not apply to cosmetics.
Chinese Politics
The People Republic of China or the PRC was founded in part to establish a more
stable government. From the PRC four different constitutions have been formulated that
have been adapted by the PRC in 1954, 1975, 1978 and 1982. The constitution that is
currently active was adopted in 1982, but was amended four different times and most
recently on March 14, 2004. The legislation power lies within The National People’s
Congress (NPC) and its Standing Committee. The NPC and its Standing Committee are
responsible for representing the people and all of the levels that are part of the
Congresses in China. The NPC supervises all state-level institutions. Its primary power,
however, is electing the President of China. China is made up of 23 provinces, five
autonomous regions, four municipalities directly under the Central Government, and the
special administrative regions of Hong Kong and Macau. The 23 provinces are Anhui,
Fujian, Gansu, Guangdong, Guizhou, Hainan, Hebei, Heilongjiang, Henan, Hubei,
Hunan, Jiangsu, Jiangxi, Jilin, Liaoning, Qinghai, Shaanxi, Shandong, Shanxi, Sichuan,
Taiwan, Yunnan, Zhejiang; the five autonomous regions are Guangxi, Inner Mongolia,
Ningxia, Xinjiang and Tibet; the four municipalities are Beijing, Chongqing, Shanghai
and Tianjin (Politics).
The current head of state is President Hu Jintao, who was elected on March 15,