US Financial Services Firms Aid China's Financial Reforms, Says New Report

Washington, DC, September 25, 2007 - The US-China Business Council (USCBC) today released an analysis of China's financial sector that recommends further market openings for foreign providers of banking, securities, insurance, and other financial services. "A fully modernized financial sector in China will benefit not only Chinese consumers and investors, but Americans as well," said John Frisbie, USCBC president.

The full report is online at http://www.uschina.org/public/documents/2007/09/uscbc-financial-services-2007.pdf.

USCBC has long held that financial modernization is the most important of China's unfinished economic reforms. The report states that financial sector reforms are critical to sustained economic growth in China, but also to addressing core issues in the bilateral commercial relationship, such as the exchange rate.

US financial services providers, meanwhile, can contribute positively to China's reform efforts. "US companies bring their expertise to the market in China, exposing Chinese companies to international best practices, both through competition and partnership," Frisbie said, adding, "American companies can help China as it builds the infrastructure of a modern financial sector."

Senior PRC and US government officials have recognized the role of financial services reform in the bilateral trade and economic relationship. Financial issues are a central part of the Strategic Economic Dialogue, with its third round scheduled for December in Beijing; and the Joint Economic Committee, which will convene in Washington in late October. In preparation for those meetings, USCBC's financial services report describes recent developments in banking, electronic payments, futures markets, insurance, mutual funds, and securities that have occurred in the past year and provides specific recommendations for further progress that will continue to aid China's financial reforms and create new opportunities for US firms.

The US-China Business Council (USCBC, www.uschina.org) is the leading organization of US companies engaged in business with the People's Republic of China. Founded in 1973, the USCBC provides extensive China-focused information, advisory, and advocacy services, along with events, to more than 250 US corporations operating within the United States and throughout Asia.