Analysis of Opportunities & Effect of China’s Entry into the WTO on China’s Insurence

ID:	TARP-204
Title:	Analysis of Opportunities & Effect of China’s Entry into the WTO on China’s Insurence
Source:	Insurance Research, No. 05, 2002
Parties:
Dispute Resolution Organ:
Year:	2002
Pages:	0
Author(s):	Qixiang Sun
Keywords:	China, national treatment, regulation, supervision, trade, transparency, WTO, insurance, MFN (Most Favored Nation)
Abstract:	China has become the member country of the WTO. The insurance market has been open to the world. The domestic and foreign insurance companies compete with each other in the market under the WTO regulations. Therefore, one fundamental goal for China is to build a fairer and more effective market environment characterized as “competitors participation, fair competition rules, transparent competition process, and effective competition results”. Implementing “MFN” (Most-favored-nation), National Treatment, Transparency principles and eliminating the local restrictions, restrictions on type of insurance risks, are aimed at getting rid of the unfair factors involved in the competition. All these will contribute to relieving the contradictions between the competitor and make the insurance companies have relatively stable market anticipation and rational market behaviors. All above constitutes the great opportunities for China’s insurance. However, opportunities do not equal to the realistic conditions. Whether China’s entry into the WTO can have positive effects on China’s insurance or not depends on whether the reasonable corporate governance can be formed, whether the modes of operation can be changed smoothly, whether the domestic insurance can satisfy the insurance supplies, whether the reasonable competitive enfironment can be built up and whether the insurance supervision can be improved essentially, etc.
Secured:	False
Download Article:	Available here (Chinese)