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.


Some see signs of hope on North Korea as Trump heads to UN

Updated 22 September 2018
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Some see signs of hope on North Korea as Trump heads to UN

  • In the year since Trump’s searing, debut UN speech fueled fears of nuclear conflict with North Korea
  • The two leaders have turned from threats to flattery

WASHINGTON:North Korea’s Kim Jong Un is “little rocket man” no more. President Donald Trump isn’t a “mentally deranged US dotard.”
In the year since Trump’s searing, debut UN speech fueled fears of nuclear conflict with North Korea, the two leaders have turned from threats to flattery.
And there’s fresh hope that the US president’s abrupt shift from coercion to negotiation can yield results in getting Kim to halt, if not abandon, his nuclear weapons program.
Trump will address world leaders at the United Nations on Tuesday on the back of an upbeat summit between South and North Korea, where Kim promised to dismantle a major rocket launch site and the North’s main nuclear complex at Nyongbyon if it gets some incentive from Washington.
North Korea remains a long, long way from relinquishing its nuclear arsenal, and the US has been adding to, not easing, sanctions. Yet the past 12 months have seen a remarkable change in atmosphere between the adversaries that has surprised even the former US envoy on North Korea.
“If someone had told me last year that North Korea will stop nuclear tests, will stop missile tests and that they will release the remaining American prisoners and that they would be even considering dismantling Nyongbyon, I would have taken that in a heartbeat,” said Joseph Yun, who resigned in March and has since left the US foreign service.
Since Trump and Kim held the first summit between US and North Korean leaders in Singapore in June, Trump has missed no chance to praise “Chairman Kim,” and Kim has expressed “trust and confidence” in the American president he once branded “senile.”
But progress has been slow toward the vague goal they agreed upon — denuclearization of the Korean Peninsula, which has eluded US presidents for the past quarter-century. The US wants to achieve that by January 2021, when Trump completes his first term in office.
Although Kim won’t be going to New York next week, meetings there could prove critical in deciding whether a second Trump-Kim summit will take place any time soon.
Secretary of State Mike Pompeo has invited his North Korean counterpart Ri Yong Ho for a meeting in New York, and Trump will be consulting with South Korean President Moon Jae-in, fresh from his third summit with Kim this year. It was at that meeting in Pyongyang that the North Korean leader made his tantalizing offers to close key facilities of his weapons programs that have revived prospects for US-North Korea talks.
Yun, who spoke to reporters Friday at the United States Institute for Peace in Washington, said the US goal of achieving denuclearization in just two years is unrealistic, but the offer to close Nyongbyon, where the North has plutonium, uranium and nuclear reprocessing facilities, is significant and offers a way forward.
That’s a far cry from last September. After Trump’s thunderous speech, Yun’s first thought was on the need to avoid a war. The president vowed to “totally destroy North Korea” if the US was forced to defend itself or its allies against the North’s nukes. “Rocket man is on a suicide mission for himself and his regime,” the president said.
His blunt talk triggered an extraordinary, almost surreal, exchange of insults. Kim issued a harshly worded statement from Pyongyang, dubbing the thin-skinned Trump a “mentally deranged US dotard.” A day later, the North’s top diplomat warned it could test explode a hydrogen bomb over the Pacific Ocean.
Tensions have eased hugely since then, and cracks have emerged in the international consensus on pressuring North Korea economically to get it to disarm.
The US accuses Russia of allowing illicit oil sales to North Korea. Trump has also criticized China, which has fraternal ties with the North and is embroiled in a trade war with the US, for conducting more trade with its old ally. Sanctions could even become a sore point with South Korea. Moon is eager to restart economic cooperation with North Korea to cement improved relations on the divided peninsula.
All that will increase pressure on Washington to compromise with Pyongyang — providing the incentives Kim seeks, even if the weapons capabilities he’s amassed violate international law. He’s likely eying a declaration on formally ending the Korean War as a marker of reduced US “hostility” and sanctions relief.
That could prove politically unpalatable in Washington just as it looks for Kim to follow through on the denuclearization pledge he made in Singapore.
Frank Aum, a former senior Pentagon adviser on North Korea, warned tensions could spike again if the US does not see progress by year’s end, when the US would typically need to start planning large-scale military drills with South Korea that North Korea views as war preparations. Trump decided to cancel drills this summer as a concession to Kim.
“Things can flip pretty quickly,” Aum said. “We’ve seen it going from bad to good and it could fairly quickly go back to the bad again.”