The country is making it easier for companies from around the world to join the industry.
According to an American business group, China has announced its latest insurance news by saying that its restrictions on foreign companies within that industry as well as in delivery and travel will be eased as a part of an effort to turn around the current plummet in foreign investors.
Some of these efforts were revealed in talks between the United States and China last May.
However, additional details are now being added at this unique time ahead of the leadership transition at which time there was little expected in terms of massive regulatory changes. This, according to the American Chamber of Commerce in China’s president, Christian Murck.
This insurance news appears to be a direct result of the shrinking investments from foreign companies.
Murck explained that “I view it as partially a response to a trend of declining foreign investment.” He also added that “I know the Chinese have been concerned about what’s driving that and what they can do to make sure foreign investment is encouraged.”
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It isn’t the habit of Beijing to publicize the majority of its regulatory changes, and it isn’t odd for the first insurance news to come from the companies that will be affected by the changes. The ministry of commerce stated that August was the third month in a row in which the direct investment in China from foreign sources saw a notable decline. It named the American and European economic struggles as the culprit.
Already this month, regulators in China have granted licenses to two different global express delivery services in order to be able to sell courier services in some cities in the country, said the American Chamber. It also pointed out that, starting in October, foreign airlines have been informed that they don’t need to use the same state-owned enterprise in order to provide travel agents with their fare information.
Specific to insurance news, third party liability auto insurance companies have had their regulations slackened when they are being sold by foreign companies. The original opportunity opened up in May, but the restrictions were so tight that it was difficult to offer any level of competition in that market.