Finance industry leaders yesterday urged the government to beef up the sector prior to China's opening to foreign banks, which will occur within the next five years.
"China will be a potential threat to Taiwan when it opens up its financial sector to foreign investors in five years," newly elected People First Party legislator Thomas Lee (
Commenting on the prospects for post-WTO Chinese markets, Lee -- a finance professor at National Chengchi University -- said that, "Within the next five years, Taiwan should take advantage of opportunities to become a logistics center for the high-tech and financial services sectors."
Fubon Group's vice chairman Daniel Tsai (蔡明忠), however, said that Taiwanese businessmen should be cautious when expanding into China's markets.
"China's licensing process is very political," Tsai said.
Citing Fubon's example of getting licensed to enter China's insurance market, Tsai said China put constraints on services that were impractical. The sale of property insurance was allowed while the sale of auto insurance was not permitted, he said.
Tsai said that the best time for local insurers to enter the China market was before it entered WTO because China used to grant Taiwan favorable treatment. But now Taiwan is treated equally with all other foreign investors, he said.
Lawrence Liu (劉紹梁), a lawyer at Lee & Li, yesterday urged the government not to prolong the passing of WTO-related deregulation measures. Citibank's country corporate officer, Eric Chen (陳聖德) agreed, saying that deregulation will allow local financial players to benchmark with other global players, to expand their market values and to shape a new environment for business.
Stephen Long, head of Citibank's Asia Pacific Group, said that the bank wants to expand into the Middle Kingdom.
"As China opens up their regulatory environment under the WTO, we think we are positioned to take advantage of opportunities across the Taiwan Strait," he said.
"Our alliance with Fubon Financial Holding Co (富邦金控) gives us the ability and flexibility to invest across the Strait together or independently," Long said.
Citibank has a 15 percent stake in Fubon Financial Holding. It has injected US$810 million into its strategic alliance with Fubon.
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