•HRES 552 IH 
Whereas China is one of the few remaining major emerging 
market countries that maintains limitations on foreign 
ownership of financial services firms; 
Whereas foreign ownership restrictions severely limit United 
States firms’ ability to operate in China across the finan-
cial services sector, such that United States and other 
foreign firms are not permitted to own more than a 49 
percent stake in a Chinese asset management firm, a 20 
percent stake in a Chinese bank, a 33 percent stake in 
a Chinese securities firm, a 24.9 percent stake in a Chi-
nese insurance company, and a 50 percent stake in a life 
insurance joint venture; 
Whereas foreign entities are not permitted to invest in Chi-
nese A-share securities markets except through an oner-
ous licensing and quota system for ‘‘qualified foreign in-
stitutional investors,’’ and Chinese institutional investors 
are also restricted in investing in foreign securities mar-
kets except through a licensing and quota system for 
‘‘qualified domestic institutional investors’’; 
Whereas the government of China has failed to meet its 
World Trade Organization commitment on licensing of 
foreign broker-dealers and maintains discriminatory re-
strictions on the scope of business of foreign securities 
firms; 
Whereas the government of China maintains discriminatory 
standards for foreign banks in terms of capital require-
ments, restrictions on corporate operational form, and re-
strictions on bank branches, and has been slow to act on 
foreign banks’ applications; 
Whereas the government of China has approved no new en-
terprise annuities licenses for United States or other for-
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•HRES 552 IH 
eign firms since 2005 and maintains a cumbersome 
multi-agency process for approval of licenses; 
Whereas the government of China maintains discriminatory 
practices for branch applications from foreign-invested 
life insurers, granting branch approvals slowly and con-
secutively, while domestic insurers receive concurrent ap-
provals to open multiple branches; 
Whereas major Chinese financial institutions have sought li-
censes to operate in the United States on the grounds 
that Chinese financial regulators satisfy consolidated su-
pervision standards, at the same time the Chinese gov-
ernment restricts access to United States and other for-
eign firms on grounds that suggest that Chinese regu-
lators may not satisfy these standards; and 
Whereas the Secretary of the Treasury has initiated the Stra-
tegic Economic Dialogue as a forum in which to engage 
Chinese officials on economic reform issues, including fi-
nancial market issues: Now, therefore, be it 
Resolved, That it is the sense of the House of Rep-
resentatives that— 
(1) the Government of the People’s Republic of 
China should immediately implement all of its World 
Trade Organization commitments to date in finan-
cial services; 
(2) the Government of the People’s Republic of 
China should immediately implement all of its com-
mitments to date made under the auspices of the 
Strategic Economic Dialogue initiated by the Sec-
retary of the Treasury; 
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•HRES 552 IH 
(3) the goals of the United States for the next 
meeting of the Strategic Economic Dialogue should 
be to achieve Chinese commitments toward— 
(A) removal of all foreign investment own-
ership caps on banking, life insurance, asset 
management, and securities; 
(B) nondiscriminatory treatment of United 
States financial services firms (including bank-
ing, insurer, insurance intermediary, asset man-
agement, and securities firms) with regard to li-
censing, corporate form, and permitted prod-
ucts and services; and 
(C) nondiscriminatory treatment of United 
States financial services firms with regard to 
regulation and supervision; and 
(4) United States financial service regulators, 
in assessing whether applications from Chinese fi-
nancial institutions meet comprehensive consolidated 
supervision standards, should consider whether the 
applications are for operations and activities in the 
United States that are currently prohibited for 
United States financial institutions in China, and 
the extent to which such prohibitions reflect prob-
lems with the quality of home country supervision. 
Æ 
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