China S Banking Law And The National Treatment Of Foreign Funded Banks

This book assesses new developments in and reform of China's banking law system following its accession of the WTO. It focuses on the relationship between GATS/WTO national treatment obligations and China's banking law. Tracing the history of national treatment in China, the book compares the treatment of foreign-funded banks with the treatment of Chinese-funded banks and examines the structure and shortcomings of the existing banking law framework in China. Offering suggestions as to how the framework could be restructured and analysing the economic and political bases of an integrated banking law framework, the book argues that reorganization would bring about greater consistency with GATS/WTO national treatment requirements. The book also explores the ambiguous definition of prudential carve-out, the subtle relationship between GATS national treatment and market access based on WTO cases, national treatment clauses in China’s bilateral investment treaties, and special treatment on banking in China’s free trade agreements. This volume is a valuable resource for academics and students as well as professionals and policy-makers working in the field of banking, WTO, Chinese law and foreign trade.

If China is to develop a modern and viable banking sector, it needs to put in place a suitable legal infrastructure which is consistent with emerging international supervisory standards, WTO requirements and aspirations for financial sector liberalisation. The author argues that current foreign banking laws are fundamentally out of line with international standards and practices and that legislators and supervisors do not appreciate or cultivate commonly accepted supervisory values. This book proposes a set of reforms that would at the same time create a legal environment for competitive equality between foreign banks and protect the Chinese banking system. The issues considered include the licensing process for the entry of foreign banks into the Chinese market, the ongoing regulation of foreign banks and foreign bank crisis management or bank failure resolution. The author offers a proposed framework of Chinese foreign banking law which should be of great benefit to existing and prospective foreign banks in China.

In this authoritative book, a leading Chinese expert on financial and economic law thoroughly explains the functions, activities and procedures that characterize the behaviour of financial institutions under current Chinese law. The book features: control of monetary policy formulation and implementation by the People's Bank of China (PBOC) modern central banking functions of the PBOC independence and accountability of the PBOC requirements and procedures for banking entry specific risk-based regulatory and supervisory requirements of the China Banking Regulatory Commission (CBRC) problem bank resolutions of the CBRC foreign banking law developments before and post WTO transitional period impact of new foreign banking regulations and rules on foreign bank activities in China

The recent wave of foreign investment in China's banks and the prospects of further opening of the banking sector under the WTO agreement suggest that foreign banks are likely to play an increasingly important role in China. This paper takes stock of the involvement of foreign banks in the Chinese banking sector in the perspective of international experience. While in most other countries foreign bank entry took the form of direct takeover or majority shareholding, foreign investments in China's banks have been minority shareholdings with very limited management involvement. The paper concludes that China appears to be well positioned to benefit from further opening of the banking sector to foreign investors. International experience suggests that greater competition from and participation of foreign banks can in general bring important benefits if appropriate incentives and sufficient opportunities are created

The World Trade Organisation plays the primary role in regulating international trade in goods, services and intellectual property. Traditionally, international trade law and regulation has been analysed primarily from the trade-in-goods perspective. Services are becoming an important competence for the WTO. The institutional, legal and regulatory influence of the General Agreement on Trade in Services (GATS) on domestic economic policymaking is attracting increasing attention in the academic and policymaking literature. The growing importance of services trade to the global economy makes the application of the GATS to trade in services an important concern of international economic policy. The GATS contains important innovations that build on the former GATT and existing WTO/GATT trade regime for goods. This book fills a void in the academic and policymaking literature by examining how the GATS governs international trade in services and its growing impact on the regulatory practice of WTO member states. It offers a unique discussion of the major is-sues confronting WTO member states by analysing the GATS and related international trade issues from a variety of perspectives that include law, political economy, regulation, and business. Moreover, the role of the WTO in promoting liberalised trade and economic development has come under serious strain because of the breakdown of the Doha Development Round negotiations. The book analyses the issues in the Doha services debate with some suggested policy approaches that might help build a more durable GATS framework. The book is a welcomed addition to the WTO literature and will serve as a point of reference for academics, policymakers andpractitioners.

The imbalance between China’s currency, the RMB, and those of other countries is widely regarded as a major problem for the world economy. There was a reform of China’s exchange rate mechanism in 2005, following which the RMB appreciated 17% against the US dollar, but many people argue that further reform is still needed. This book reports on a major research project undertaken following the 2005 reform to assess the impact on China’s economy. It considers the impact in a number of areas of the economy, including export-oriented companies, the banking industry, international trade, international capital flows, and China’s macroeconomic policy. It concludes that the policies pursued so far have been correct, and that further reform, both to the exchange rate, and to the system overall, would be desirable, but that any reform should be gradual and incremental, preserving economic stability, and integrating changes with reform in other parts of the economy.