Eas­ier en­try into China

The East African - - OUTLOOK -

FOR GLOBAL in­vest­ment banks, the long wait for a more level play­ing field in China is fi­nally draw­ing to a close. China has de­tailed a time­line to fur­ther open parts of its fi­nan­cial sec­tor by June 30, eas­ing con­cern that the his­toric move would be de­railed by es­ca­lat­ing trade ten­sions amid U.S. Pres­i­dent Don­ald Trump’s threat to im­pose more tar­iffs. Ad­di­tional eas­ing, like giv­ing for­eign se­cu­ri­ties firms freer rein to en­ter new busi­nesses, will fol­low by year’s end.

Global in­vest­ment banks have long been side­lined in one of the world’s fastest­grow­ing fi­nan­cial mar­kets, where caps on own­er­ship of lo­cal joint ven­tures have stymied their ex­pan­sion.

Among changes to be im­ple­mented by June 30 is al­low­ing for­eign firms to take ma­jor­ity stakes in lo­cal joint ven­tures -Wash­ing­ton Post pol­icy year.

Given how many coun­tries have an in­ter­est in main­tain­ing a co­op­er­a­tive game, such pol­icy ac­tions are not just de­sir­able; they may be fea­si­ble. As they help to cre­ate a stronger co­op­er­a­tive foun­da­tion for fairer trade, th­ese mea­sures would also con­sti­tute a nec­es­sary (though not suf­fi­cient) step to­ward coun­ter­ing the alien­ation and marginal­i­sa­tion of cer­tain seg­ments of the pop­u­la­tion in both ad­vanced and emerg­ing economies. con­ti­nu­ity from year to

“The Only Game in Town: Cen­tral Banks, In­sta­bil­ity, and Avoid­ing the Next Col­lapse.”

Pic­ture: File

titu­tions.

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