Earlier this week, China laid out clear plans that heralded the opening of the Chinese financial sector to allow more foreign investments towards the end of the year 2018. The talk about opening up its financial sector is part of an effort by Beijing to avert the criticism from countries like the United States that China is limiting the competition in an unfair manner.
Announcements made by PBOC
Yo Gang, the Governor of the People's Bank of China has said that soon, foreign companies will be allowed to set up their establishments in China and that these establishments will be treated on par with the Chinese companies in the financial sector.
China has said that the efforts to open the financial sector towards the foreign investors will begin as early as June this year and will continue to have some strategies in place by the end of the year.
According to the plans laid out by China, foreign companies will soon be allowed to invest in financial leasing, consumer finance, trust companies and so on.
These plans were announced earlier in the past year.
The People's Bank of China has also made an announcement that a trading link between China and London will be in place by the end of the year.
Foreign companies have often, in the past, complained about the restrictive approach to foreign investments. Even though there are a number of policies that promote foreign trade within the country, the policies have always been met by unofficial restrictions. China was also criticized for not trying to bring a change to these restrictive conditions.
According to the new plans, foreign ownership in fund management, life insurance companies, futures, and securities will now be raised to 51 percent in due course.
China had announced that it would be removing the restrictions on foreign trades back in November 2017, and the announcements will soon take effect once proper policies are implemented.
China attempts to reconcile with the U.S.
In addition, the president of China has further agreed to bring down import tariffs. This has come as an attempt for negotiation with the United States.
President Trump's announcement about imposing tariffs on imports from China caused a bitter dispute between the two, with China threatening to increase the import tariffs on goods coming from the United States. Recent announcements made by the president of China, however, seem to emphasize their effort to strike a peaceful relation with the U.S.