The Analysis Of China Banking Competitiveness After Entry Into WTO

It has been a long way, from 1986 to 2001, for China to become a member of WTO (World Trade Organization). However, with China's entry in 2001 lots of hot issues arise and grow into the focus of debate. One of them is China banking competitiveness after the entry.As we all know, banking industry is one of the most fragile sectors and tends to be attacked. After China's entry, it will open its financial sector to foreign financial entities with fewer even no limitations, which signals that foreign banks will gain more free space to expand their business into Chinese financial market. Anyone can't afford to ignore the clashes foreign banks' entry brings about to domestic banks and China's banking sector safety. So, before and just after China's entry in 2001, many scholars and experts have forecasted the clashes on domestic banks and industry by foreign banks. Whether domestic banks will be able to compete with more competitive foreign counterparts is of great concern.It has been the fourth year since China's accession. What effects has foreign banks brought about to domestic banks and industry? Has the forecast made before been proved? During the Transition Period, what's the competitiveness like between foreign and domestic banks? This thesis will answer these questions. The first section of the thesis focuses on analysis of the current conditions of domestic and foreign banks, including chapter one and two. Chapter one illustrates the structure of Chinese banking system and points out the problems confronting domestic banks, especially the four state-owned commercial banks; chapter two analyzes the status of foreign banks in China, including its present status, layout, core businesses, and operating strategy.