Insurance was one of industries that were opened very first after China’s accession to the WTO in 2001. During 2002 to 2005, there was a peak of the foreign insurers’ entry, with the rapid growth of their market share. However, in recent years, the foreign insurers found themselves not able to grow as fast as they have expected, which was described as their “Seven Year Itch” in China. Several cases of equity transactions have taken place in 2009-2010, mainly involved with the foreign insurers reducing their shareholdings. This was regarded as the sign of foreign insurers changing their strategies in Chinese market. In this paper we found strong evidence to show that the current performance of foreign insurers in China was relatively worse than that in the other major insurance markets. From the comparison of the regulatory environment and market performance, we can say for sure that regulation restrictions should be at least one of the major reasons for the current situation. Also we found that the “50-50” shareholding structure which was adopted initially by many life foreign insurers could be blamed for the slow growth recently. And poor bancassurance business performance could explain the shareholding reductions recently for some of the foreign life insurers.

The separation of the government from the industry in telecommunications sector was carried out in a gradualist or experimental manner to make sure a “reform without losers”. Both the supervising ministries and local governments became the “early winners” who were in favor of the status quo. A meaningful industrial reform started from 1994 but ended in 1998. China’s entry into the World Trade Organization (WTO) was just right on time to secure the outcome of the reforms. However, determined by the nature of uncompetitiveness and state monopoly, the telecommunications sector was against the liberalization requested by the GATT/WTO members. Close administrative and financial connections between the supervising ministry and subordinate sector caused a high degree of convergence of their interest that in turn implies that the ministry had strong incentives of protecting the sector. After having terminated the fragmented governance since 1995, the Ministry of Information Industry (MII) successfully prevented the sector from giving much concession compared to the other sectors during Sino- US negotiations. Although a limited concession was made, it is possible that the supervising ministries would not fulfil its commitment. On the one hand, the MII would refuse to cut off its administrative and financial ties with the enterprises. On the other hand, the enterprises would still be willing to be protected by the government for the monopolistic benefits. Even though the door is half-open to international competition, the Ministry had developed other means to block the entry of foreign service providers. A new form of fragmented governance is taking shape since 2003 when the State Asset Supervision and Administration Commission (SASAC) was founded. It created tensions between the bureaucracies and might create loopholes for the foreign entry in the future.

The People’s Republic of China has taken substantial steps to reform its financial system, especially the banking sector, since 1995. The speed of banking reform has accelerated after China joined the World Trade Organization (WTO) in December 2001. This study examines the impact of recent banking reforms and of WTO accession on the cost efficiency of the Chinese banking sector. We use a non-parametric approach to investigate the efficiency trend and productivity growth of banks in China between 1998 and 2006. We also compare the efficiency and productivity growth of different banking ownership groups prior to and after joining the WTO. We find that, on average, domestic banks outperform their foreign counterparts over the sample period in terms of overall and allocative efficiency, but they fall behind in terms of overall technical efficiency. The comparison of efficiency indexes pre and post WTO accession reveals that the efficiency of domestic banks has declined post accession, while foreign banks have enjoyed an improvement rise in their cost efficiency post WTO accession in 2001.The findings of this study further suggest that the total factor productivity of Chinese banks has weakened over the period under study. However, a pre and post analysis of WTO accession results shows that total factor productivity has improved for both domestic and foreign banks after China joined the WTO, equally owing to efficiency improvement and technological progress

The People’s Republic of China has taken substantial steps to reform its financial system, especially the banking sector, since 1995. The speed of banking reform has accelerated after China joined the World Trade Organization (WTO) in December 2001. This study examines the impact of recent banking reforms and of WTO accession on the cost efficiency of the Chinese banking sector. We use a non-parametric approach to investigate the efficiency trend and productivity growth of banks in China between 1998 and 2006. We also compare the efficiency and productivity growth of different banking ownership groups prior to and after joining the WTO. We find that, on average, domestic banks outperform their foreign counterparts over the sample period in terms of overall and allocative efficiency, but they fall behind in terms of overall technical efficiency. The comparison of efficiency indexes pre and post WTO accession reveals that the efficiency of domestic banks has declined post accession, while foreign banks have enjoyed an improvement rise in their cost efficiency post WTO accession in 2001.The findings of this study further suggest that the total factor productivity of Chinese banks has weakened over the period under study. However, a pre and post analysis of WTO accession results shows that total factor productivity has improved for both domestic and foreign banks after China joined the WTO, equally owing to efficiency improvement and technological progress

The Article first presents a brief history or survey of some of the earlier problems that associate with China’s banking and financial institutions. The Article then addresses specific problems, in the context of the rules, procedures, and practices of the banking and finance sector, which widely range from non-performing loans, to China’s money market and interbank lending business. These problems also directly associate with the liberalization of the banking and finance sector of the economy, and the requirements of both the WTO rules and China’s WTO Protocol on accession. The Article also briefly explores the US sub-prime mortgage crisis and its contagion effect throughout the world, including the Asian region. In the context of China and the subprime crisis, the Article summarizes some of the problems that associate with China banking and financial institutions, by focusing on the policy implications of the history of banking and finance in China, and what this means in terms of both WTO compliance and greater liberalization of banking and financial institutions, especially pursuant to the WTO GATS, as service industries. All of this, eventually, allows for the presentation of certain conclusions concerning China banking and finance in the new era of a global subprime crisis.

摘要 随着我国进入WTO，我国将逐步取消在各方面对外资银行的限制，并在2006年12月11日前对其实现全面的国民待遇,外资银行将成为我国金融市场上重要的一部分.作为我国银行业监管当局,银监会将接受更加严峻的考验.简单的区域监管将无法防御国际间快速传播的风险，这就需要对外资银行总行进行监管。通过对外资银行总行的监管,可以避免部分银行不良资产比率较高、外资银行存款准备金的计提方式的漏洞、外资银行的操作风险、外资法人机构风险突出、业务创新加快的风险等诸多风险。当前，我国还没有对这种监管方式进行完整的规定。本文于法规和具体操作两方面进行全面的阐述，对于该监管方式的具体运做进行了明确的表达。本文还论述了该监管方式的优劣点，通过分析说明运用这种监管为我国带来得好处要远远大于其所带来得坏处。总之，对外资银行总行的监管是我国应对新的银行监管形势的一个重要方法。 Abstract Being a member of WTO, our country will progressively cancel the various restrictions of foreign banks. And before 11st December 2006, the comprehensive national treatment will become true. The foreign banks are going to be one of the most essential parts in our bank industry, the China Banking Regulatory Commission has to accept more severer test. The simple area supervision cannot defend the risks which have been spread fast in the world. In that case, the head offices of foreign bank should be supervised. It can avoid the high rates of harmful property, the loopholes of deposit planning money in foreign banks, the operation risk, foreign capital corporation having more risk and the risk of prompting business creation. In nowadays, we have not perfect rules in such area. This article discussed both statutes and specific operations, especially emphasized the specific operations of supervision. In the article, the author also discussed the advantages and disadvantages of supervision, and explained the advantages of supervision were far more than the disadvantages. To sum up, supervising the head offices of foreign bank is an important way for us to deal with the new situation of bank supervision.

WTO的加入，意味着我国的银行业将置身于经济全球化、金融国际化、市场一体化的世界经济大潮中，将面临新的发展机遇，同时也面临着巨大的冲击。银行会计工作如何应对入世的挑战，是当前银行业迫切需要解决的重要问题。本文针对目前银行会计工作存在的主要问题结合工作实践进行了一些探讨，并就银行会计如何应对加入WTO的要求与挑战提出了针对性的对策。

本文首先建立两部门内生增长开放经济的动态模型，然后在此基础上将其发展为一个中国加入世贸组织的不可逆性决策的随机微分数学模型。通过求出该随机问题的最优解，从而得出中国加入世贸的最佳时机，同时也讨论了加快或减慢中国入世的相关因素。 This paper develops a simple theoretical open economy model to analysis the irreversible decision of China’s accession to the World Trade Organization (WTO). From the optimal solution of a stochastic differential equation based on the option theory in financial economics, it derived the optimal timing for China’s entry into the WTO and discussed what factors that may speed up or slow down the entry.