A push is on to try to persuade China to modify rules proposed to allow foreign banks to operate in the retail sector beginning in December. Five years ago, when China joined the World Trade Organization, the government said it would allow foreign banks into the lucrative sector. As the proposals currently stand, China would require foreign banks to incorporate in the mainland rather than just open branches there, a costly proposition. “This is the type of thing that has happened before in terms of making it ore difficult for foreign financial institutions to take full advantage of what they are entitled to” according to WTO commitments, John Dearie, senior v.p. at the Financial Services Forum, told Reuters. Dearie is hoping Treasury Secretary Henry Paulson, among others, will exert pressure on China to meet its commitments when he meets with officials on the mainland next month.
