Publication

This report begins with a summary of the current status of China’s banking sector and the government’s banking regulatory system. It then addresses four concerns, with a focus on the implications for US relations with China. These concerns are the perceptions that 1) China is providing domestic banks advantages that are violating its WTO accession agreement, 2) that Chinese government is utilizing its banks to subsidize key companies and industries, 3) the questioned efficiency and solvency of China’s banking system and 4) the question whether China’s banks operate based on commercial considerations or to what extent they are a following a national political and/or economic agenda.