China lifts foreign ownership limits on financial firms

President Donald Trump reiterated calls for better access to Chinese markets in meetings with Chinese President Xi Jinping. Above, Trump meets Xi at a state dinner at the Great Hall of the People in Beijing. (Reuters)
Updated 10 November 2017
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China lifts foreign ownership limits on financial firms

BEIJING: The Chinese government on Friday said it will raise foreign ownership limits in domestic financial firms, a long-anticipated step that grants greater access to overseas investors into the Asian giant’s financial services market.
The move, announced by vice finance minister Zhu Guangyao, comes a day after US President Donald Trump reiterated calls for better access to Chinese markets in meetings with Chinese President Xi Jinping.
The changes include raising the limit on foreign ownership in joint-venture firms involved in the futures, securities and funds markets to 51 percent from the current 49 percent. They will take effect immediately following the drafting of specific related rules, Zhu told a news conference.
The plan to ease ownership restrictions comes as Beijing faces mounting pressure from Western governments and business lobbies to remove investment barriers and onerous regulations that restrict overseas companies’ operations in its markets.
During his trip to Beijing this week, Trump said that trade between the two nations was unfair, and called for greater market access for US companies.
“We really have to look at access, forced technology transfer, and the theft of intellectual property, which just, by and of itself, is costing the United States and its companies at least $300 billion a year,” Trump said.
“Both the United States and China will have a more prosperous future if we can achieve a level economic playing field. Right now, unfortunately, it is a very one-sided and unfair one.”
China will drop foreign ownership restrictions on local banks and asset management companies, Zhu said, adding that the time is right for world’s second biggest economy to step up the liberalization of its financial sector.
Full foreign ownership of local firms involved in the futures, securities and funds markets will not be permitted until after three years, while full overseas ownership of insurance firms will be allowed only after five years, Zhu said.


Australia warns citizens ahead of expected Jerusalem move

Updated 22 min 36 sec ago
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Australia warns citizens ahead of expected Jerusalem move

  • Australia will follow the US and recognize Jerusalem as Israel’s capital
  • Citizens were told to take care while traveling in neighboring Muslim-majority Indonesia

SYDNEY: Australia on Friday warned citizens to take care while traveling in neighboring Muslim-majority Indonesia, ahead of an expected but contentious move to recognize Jerusalem as Israel’s capital.
Prime Minister Scott Morrison is expected to announce — as soon as Saturday — that his government will follow US President Donald Trump’s lead and recognize the contested city as Israel’s capital.
Scores of Australians preparing to jet off to Bali and other tropical island destinations for upcoming summer holidays should “exercise a high degree of caution,” the Department of Foreign Affairs warned.
Officials in Canberra told AFP they expected the announcement to come on Saturday, the Jewish Sabbath, but cautioned that events could yet alter those plans.
Both Israel and the Palestinians claim Jerusalem as their capital. Critics say declaring Jerusalem the capital of either inflames tensions and prejudges the outcome of final status peace talks.
Trump’s decision to move the US embassy from Tel Aviv last May prompted tens of thousands of Palestinians to approach the heavily-protected Israeli border. At least 62 Palestinians were killed by Israeli fire that day.
Morrison is expected to stop short of actually shifting Australia’s diplomatic corps to the Holy City, amid warnings from his own officials about the cost and security implications.
But recognizing Jerusalem would help the embattled Australian PM — who faces the prospect of an election drubbing next year — with Jewish and conservative Christian voters and win him friends in the White House.
His supporters argue Israel has the right to choose its own capital and peace talks are dead in the water, so there is no peace to prejudge.
But the move still risks heightening unrest, both in Australia’s immediate neighbor Indonesia — the world’s most populous Muslim nation — and further afield.
The Palestinian government would press for Arab and Muslim states to “withdraw their Ambassadors” and take some “meat and wheat” style “economic boycott measures” if the move went ahead, Palestinian ambassador to Australia Izzat Abdulhadi told AFP.
Indonesia’s government, facing domestic pressure at home, had reacted angrily earlier this year, when Morrison floated the idea of both recognizing Jerusalem and moving the Australian embassy there.
The issue has put the conclusion of a bilateral trade agreement on hold.
In the meantime, Australia’s foreign ministry has moved to prepare the ground.
“Demonstrations have been held in recent weeks around the Australian Embassy in Jakarta and the Australian Consulate-General in Surabaya,” it warned in a public notice Friday.
“Protests may continue at the Embassy in Jakarta or at any of Australia’s Consulates-General in Surabaya, Bali and Makassar,” the Department of Foreign Affairs said.”Exercise a high degree of caution.”
Tensions are currently running high between Israel and the Palestinians.
At least 235 Palestinians and two Israelis have died during violence in Gaza since March, mostly in border clashes.
On Thursday the Israeli army launched raids into the Palestinian city of Ramallah after a Palestinian shot dead two Israeli soldiers at a bus stop in the occupied West Bank.
Netanyahu vowed to ‘legalize’ thousands of settlements homes considered unlawfully-built even by Israel.
In total six people were killed in the most violent 24 hours to hit the West Bank and Jerusalem in months.