Whats the impact of Chinas WTO accession on foreign life insurers doing business in China?
Poon: China’s WTO entry will bring many changes, and perhaps present foreign financial insurers with new investment opportunities in that market. According to China’s WTO timetable, any new company starting operations in China has to do it on a joint venture basis. They have to form a joint venture with a local insurance company; that will ensure the foreign company shares its technology, experience and professionalism with the local partner. While currently there are only several cities allowed to open the market, such geographic constraints will be removed three years after China’s WTO accession. However, there’s a tricky thing here. Although there will be no restriction on where you can start a business, you still have to apply to receive a license and that involves a lot of procedures. The length of the license depends on how efficient the Chinese government is. On the surface China is definitely a market with great potential, but to [use] this potential requires a lot of work and
