Foreign access to banking markets in China and Taiwan

China and Taiwan today are both trying to become members of the World Trade Organization (WTO). Recently they have committed a lot of efforts in their banking law reforms and these recent reforms in both countries have provided more opportunities for foreign financial investors. With future WTO memberships, China and Taiwan will be bound by the upcoming General Agreement on Trade in Services (GATS) and consequently will increase their domestic banking services market to foreign banks. This thesis postulates that, while Taiwan and China have different attitudes toward their financial policy, both countries will continue to liberalize their financial markets in the context of the GATS. In time, with China's future financial reform having relevant influence on its economy, its future impact will be an important consideration for Taiwan, who is also going through financial reform and trying to establish itself as the Asia Pacific Financial Operation Center in the region. This thesis focuses on the foreign access opportunities to the banking markets in China and Taiwan. Chapter One starts with a brief introduction, followed by Chapter Two, which begins with an overview of GATS as well as its Annexes, Decision and Understanding on Financial Services. Chapter Three examines the entry conditions and business activities of foreign banks in China, followed by the assessment on the impact of China's accession to WTO. In comparison, Chapter Four further examines the entry conditions and business activities of foreign banks in Taiwan, followed by a description of Taiwan's future legislative reforms geared toward WTO membership with intents to become the Asia Pacific Financial Operation Center of the future. Finally, Chapter Five marks the conclusion for this thesis.Law, Peter A. Allard School ofGraduat