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Insurance

  • After China's accession to WTO, foreign life insurance companies are permitted to have business establishments only in the form of joint ventures in China and foreign ownership in the joint venture shall not exceed 50 per cent. Within three years after accession, the foreign equity share in a joint venture is allowed to increase to a dominant 51 per cent. However, such a foreign insurance company should have more than 30 years of established experience in a WTO member state with total assets of more than US$5 billion. In addition, the foreign insurance company should have had a representative office in China for two consecutive years .

  • Upon approval, the formation of a branch network of an insurance company will be permitted consistent with the phase out of the geographical restrictions.

  • After China's accession to WTO, three more cities (Dalian, Shenzhen and Foshan) will be opened up for foreign insurance companies in addition to Shanghai and Guangzhou where foreign insurance services have already been allowed. Within two years after the accession, another ten cities (Beijing, Chengdu, Chongqing, Fuzhou, Suzhou, Xiamen, Ningbo, Shenyang, Wuhan and Tianjin) will be added to the list of areas where foreign insurance companies are allowed to provide services. Within three years after China's accession, geographical restrictions will be completely removed.

  • Within two years after China's accession, foreign non-life insurance companies will be permitted to establish wholly-owned subsidiaries in China. Within four years after China's accession, compulsory cession requirements will be removed. Within five years after China's accession, wholly -owned subsidiaries of foreign insurance brokers will be permitted.

  • Foreign life insurance companies are permitted to provide individual life insurance services to both foreigners and Chinese citizens after China's accession to the WTO. Within three years after accession, they will be permitted to provide health insurance, group insurance and pension/annuities insurance to foreigners and Chinese.



Security industries

  • Upon China's accession to the WTO, joint ventures in security investment fund management will be permitted in China. Within three years after the accession , the foreign equity share in such joint ventures will be permitted to increase to 49 per cent.

  • Within three years after China's accession, joint- venture securities companies will be permitted where the foreign equity share does not exceed 33 per cent. They will be permitted to engage in underwriting A shares, B shares and H shares, as well as government and corporate debts and to launch funds.



Audio and video products

  • Foreign companies will not be permitted to produce audio and video products in China.

  • Without prejudice to China's right to examine the content of audio and video products, contractual joint ventures with Chinese partners to engage in the distribution of audiovisual products, excluding motion pictures, are permitted.

  • Upon accession , China will allow the import of up to 20 motion pictures per annum on a revenue- sharing basis. Foreign investors are permitted to construct or renovate cinemas, but the percentage of foreign investment shall not exceed 49 per cent.



Distribution service

  • Within three years after China's accession, the restrictions on geographical areas, equity shares, quantities in relation to foreign wholesale services (excluding tobacco and salt) and commission agents ' services (excluding tobacco) will be removed. The restriction on the equity share of franchising operations will also be removed within three years after accession .

  • Retail joint ventures will be allowed in the five Special Economic Zones (Shenzhen, Zhuhai, Shantou, Xiamen and Hainan), as well as in Beijing, Shanghai, Tianjin, Guangzhou, Dalian, Qingdao, Zhengzhou and Wuhan. Four joint-venture retail enterprises shall be allowed in Beijing and Shanghai respectively. In each of the other places, no more than two will be permitted. Two among the four joint-venture retail enterprises in Beijing may set up branches in the same city.

  • Within five years after China's accession, all restrictions on the field of distribution with foreign involvement will be removed.

  • For those chain stores with more than 30 outlets selling products of different types and brands of multiple suppliers, foreign majority ownership is not permitted if such stores distribute grains, cotton, vegetable oils, sugar, books, magazines, pharmaceutical products, pesticides, mulching films , processed oil, fertilizers and other designated products.