REFORM IN CHINA KEY TO VITALITY OF U.S. FINANCIAL SERVICE BUSINESS
Congressman Peter J. Roskam (R-IL) yesterday partnered in introducing legislation calling on the government of the People's Republic of China to remove barriers to U.S. financial services firms seeking access to China's financial service market.
Roskam, a member of the United States House of Representatives Financial Services Committee, expressed the need for China to open its markets to foreign financial services entities citing massive opportunities for U.S economic and job growth.
"China boasts a consumer market of over 1.3 billion, one-fifth of the world's population, yet the United States only exported $60 billion in goods and services to the People's Republic last year," noted Roskam. "The U.S., in concert with China, has an unprecedented opportunity to expand an important global economic relationship by allowing the thriving U.S. financial services industry to sell and meet the demand of services by the citizens of China. By opening up its financial sector to greater foreign participation China will finally be able to provide the most needed products that its citizens and business need to save, invest and insure against risk while at the same time creating access to a new market for U.S. businesses such as those in Illinois' 6th Congressional District."
H. Res. 552 calls for the removal of all foreign investment ownership caps on banking, life insurance, asset management, and securities in China. It would also discourage discrimination against U.S. financial services relating to licensing, permitted products and services, regulation and supervision.
"Chinese households are currently inclined toward disproportionate precautionary saving motivated by fear of uncertain economic prospects," continued Roskam. "Such economic worries keep many citizens of China from spending their excess capital. Active Chinese consumers eager for U.S. goods and services would provide an enormous contribution to the American economy as a whole. My district employs over 50,000 people in the financial services sector and would greatly benefit from reduced barriers. It is my hope the U.S. and China can continue to work on building their economically beneficial relationship and address such issues as removing market barriers to entry to ensure the best interest of both our nations."