WASHINGTON–With officials from China and the United States meeting in Washington this week, representatives of the insurance and other financial services industries gathered yesterday to urge that the United States press for greater access and transparency in the Chinese markets.
"Today is about the big picture," said Steve Bartlett, president and chief executive officer of the Financial Services Roundtable. While much of the debate in Washington tends to focus on the "issue du jour," he added the outcome of the talks between the U.S. and Chinese governments could have a fundamental effect on the economies of both nations for a long time.
"This is a big deal for the next 25 years, because it will determine if China joins the modern economic world," said Mr. Bartlett.
American Insurance Association President Marc Racicot said his group has been "encouraged" by talks that have occurred thus far, which are known as the Strategic Economic Dialogue, and that U.S. officials, led by Treasury Secretary Henry Paulson, understand "the imperative of market access which is reflected in both his public and private comments about the SED."
The secretary, he added, "is also acutely aware of the benefits that will accrue to American consumers and the U.S. economy and jobs through continued engagement with China."
For the most part, Mr. Racicot said insurers are seeking "common sense reforms" to increase regulatory transparency and allow for insurers to expand their presence throughout the country.
"These are very simple issues, matters of common sense, but huge issues," He said.
On the issue of regulatory transparency, Mr. Racicot said insurers are seeking an open process, "with some due process" that would allow insurers to know where they stand. He also said insurers were looking for the "removal of territorial restrictions on branching," that limits companies' ability to serve the needs of Chinese consumers.
By working together and improving the climate of financial services trade, Mr. Racicot said the two governments can help both their countries.
"American companies can assist in the construction of a sound financial services infrastructure in China, which in return will ultimately benefit the U.S. banking, securities and insurance sectors," he said.
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