Since 1979, China has been in the midst of an ongoing process of liberalization of financial services, which has been accelerated under its WTO obligations. Such liberalization increases the vulnerability of China to financial crises, with domestic and international implications. In order to reduce its vulnerability, China is seeking to develop a robust financial system by restructuring its financial regulatory and institutional structure in accordance with international standards.
The reform of China s financial system raises many challenges. At the international level, there is no explicit linkage between the required legal infrastructure that must be in place for the development of a robust financial system and financial liberalization under the WTO. At the domestic level, weaknesses remain, which are likely to be brought to the surface by financial liberalization. China's challenge is to strike an appropriate balance between a robust financial system and WTO compliance.
This book addresses the ongoing process of financial restructuring and reform in post-WTO China from a legal perspective.