US/China trade deal disappoints

The trade deal concluded last week between China and America has failed to provide a new window of opportunity for insurers — for the moment. Presently, insurers are restricted to selling a limited number of products only in the provinces of Shanghai and Guangzhou. That will not change. Although the bilateral trade agreement did not spell out any extension of the present one, insurers are confident that once-closed markets will soon open — but only when China is admitted to the World Trade Organisation. The agreement notes foreign insurers might be allowed to enter into partnership with Chinese insurance companies, but their interest would be limited to 50%. But Ma Yongwei, chairman of the China Insurance and Regulatory Commission, warned: "This does not mean all foreign insurers will be able to enter our market as soon as they find Chinese partners."