China to Further Open Financial Sector... Will Phase One Trade Agreement Be Implemented?

Donald Trump (right), President of the United States, and Liu He, Vice Premier of China, shake hands after signing the US-China Phase One trade agreement at the White House in Washington DC on January 15 (local time). (Photo by AFP)

[Asia Economy Reporter Geum Bo-ryeong] China has announced measures to reduce restrictions on foreign investment, including additional opening of the financial industry. This is considered an important part of the Phase 1 trade agreement between the United States and China.

The National Development and Reform Commission and the Ministry of Commerce of China jointly announced the 2020 edition of the Foreign Capital Investment Negative List on the 24th.

The list is divided into two categories. One applies to the entire territory of China, and the other applies to the Free Trade Pilot Zones.

According to the announcement, the negative list applicable to the whole of China was reduced from 40 to 33 items, and the negative list for the Free Trade Pilot Zones was reduced from 37 to 30 items. A reduction in the number of listed items means an expansion of openness.

The most important part is the relaxation of entry regulations in the financial industry. Through this adjustment of the list, China has removed restrictions on foreign capital shareholding in securities, funds, futures, and insurance companies. Going forward, global financial institutions will be able to establish wholly foreign-owned subsidiaries without partnering with Chinese firms and operate in China.

The United States has long demanded that China increase openness in the financial sector. The Phase 1 US-China trade agreement signed in January includes provisions on opening up China’s financial industry.

In the manufacturing sector, restrictions on foreign ownership in automobile companies have been abolished, and the ban on foreign companies entering the nuclear fuel processing industry has been lifted.

This content was produced with the assistance of AI translation services.