Foreign Banks In China's Direct Investment Strategies And Countermeasures

WTO accession, the pace of opening to the outside world in China is accelerating, over the past five years on China's WTO agreement in accordance with the phasing out of the many restrictions on foreign banks. When China's accession to the WTO in accordance with the signing of the "finance and trade services agreement", December 11, 2006, China fully opened the banking sector.Market has prohibited all existing foreign banks to the ownership, operation and the establishment of restrictions on the form. The future of foreign banks in China's direct investment strategy changes, China's banking sector will have a significant and far-reaching impact, which will be the first Chinese-funded banks.In this paper, the full opening of China's banking industry the new situation of foreign-funded banks in China's changing investment strategy to study this important subject. The reality of the situation in China, foreign banks to enter China's motives, the form of research. On foreign investment in the strategic objectives of the bank, the main form of direct investment, the scale described. And national treatment of foreign banks before and after the direct analysis of changes in investment strategy. To foreign banks in China is expected to carry out the main trends in the business for Chinese banks to develop strategies to provide countermeasures and proposals. On direct investment strategies of foreign banks and Chinese-funded banks to conduct a SWOT analysis, through direct investment in foreign banks and Chinese-funded banks to compare the advantages and disadvantages of Chinese-funded banks come to China should take measures to face the opportunities and challenges. The advantages of Chinese banks are based mainly on the advantages of building a home together with the local advantage is a resource-based advantage. And the advantages of foreign banks is based on the management of their own ability to build from, and is a business advantage, and can transcend the limitations of resource endowment, access to broader application of space and room for growth. Therefore, the Chinese-funded banks and foreign banks to be in the competition was better, first of all to continue to maintain their advantage of local resources, but also must be targeted at foreign banks in operation and strive to improve their own operations.In this paper, the entry of foreign banks on financial stability of the host country had a narrative, at the same time on the financial crisis in Europe and the United States under the new situation facing our country and the new environment and be conducted under the supervision of foreign banks.The article focuses mainly on theoretical research, the use of SWOT analysis, example of law, research methods, such as comparative law, of national treatment of foreign banks after the development of strategies and corresponding countermeasures banks. For the new situation, in the face of foreign banks full access to, the Chinese-funded banks to compete with them, how the competition has a very important theory of the development of guidance and reference.