People’s Bank of China (PBoC) Governor Zhou Xiaochuan said the country is preparing to further open its financial sector and signalled doing so will involve negotiations over how other nations treat Chinese investors.
Areas of potential liberalisation include banking, insurance, investment banking, securities firms, and payment systems, Zhou told a gathering of Asian leaders yesterday during a panel talk at the Boao Forum for Asia on the southern Chinese island of Hainan.
“But sometimes it’s a negotiation process,” Zhou said at the annual conference. “China would like to see that when we open wider in the financial sector, whether we can access some things. China is very interested to see that Chinese investors, especially private investors, should get better treatment overseas in other countries.”
Global trade has been the central theme of officials and executives at this year’s forum, with Zhou saying on Saturday he wanted Group of 20 leaders to seek greater consensus on the issue when they meet later this year. The central banker for the world’s largest trading nation listed the many trade discussions the country is involved in, including talks with Europe, Japan, the 16-nation Regional Comprehensive Economic Partnership in Asia, and the US over a bilateral investment treaty.
“There’s a path of negotiation and we’re waiting for the US and the new administration to decide how we would like to push this forward,” Zhou said, noting that the final responsibility belonged to the Ministry of Commerce and the National Development and Reform Commission. “We still have active talks with the Europeans, with Japan, with Asean countries, so I hope these things can continue and reach a positive result.”
Vice premier Zhang Gaoli told the gathering Saturday that RCEP negotiations should be concluded soon and cooperation within the region, including with the Association of South East Asian Nations, should be advanced. The world must commit to multilateral free trade under the World Trade Organisation and reform global economic governance, he said.
Zhou referred to China’s efforts to buy non-military high technology when discussing its treatment by other countries. “It’s dependent on the negotiation, and each side may make a kind of compromise that makes globalisation go forward and everyone can benefit,” he said. Chinese officials in the past have expressed concern that US security reviews could become a barrier to investment.
China is looking to introduce a more precise national treatment for foreign investors, Zhou said, adding that “the private sector, public sector, and state-owned enterprises, should have equal access.”
Bilateral investment treaty talks have made “a lot of progress,” former US Trade Representative Michael Froman said in a Bloomberg Television interview from Boao. He said the Chinese are “very tough negotiators” and want to find a way to work well with the US.


Related Story