7.1.2.3 Opening of the Chinese Financial Market
China has deregulated most of its economic sectors and introduced competition
since reform and the opening up. Given the importance and sensitivity of its
financial sector, China always exercises relatively strict control over itsfinancial
market, and state-ownedfinancial institutions have secured unique and important
positions within the Chinesefinancial market. With the rapid growth of China’s
economy, the Chinesefinancial market is also gradually developing and various
kinds offinancial services are rapidly expanding with much room for making
profits. Comparatively speaking, the EU enjoys advantages in thefinancial sector,
thus the EU is very concerned with the Chinesefinancial sector which has not yet
been fully opened. After China’s accession to the WTO, China provided foreign
financial institutions with limited access to itsfinancial market according to relevant
agreements, but such access cannot meet the EU’s requirements. In order to expand
the interests of the EU’sfinancial institutions in China, the EU constantly stimulates
China to open its domesticfinancial market and instills the thinking offinancial
liberalization in China.
7.2 China-EU Relations in Global Financial Governance
Since the Global Financial Crisis
The globalfinancial crisis which started in the end of 2007 has produced a profound
impact on globalfinancial governance; as a result, statuses and roles of China and
the EU are starting to change in globalfinancial governance.
7.2.1 China-EU Exchange Mechanisms in Global Financial
Governance Since the Crisis
7.2.1.1 China-EU Exchanges in Global Financial Governance Have
Been Conducted Under Increasingly Diverse Modes
In order to further improve China-EU economic and trade relations, China and the
EU have accelerated coordination and communication in economic andfinancial
policies (see Table7.2), which has enriched the China-EUfinancial exchange
mechanism at the bilateral level. According to theJoint Declaration of the 10th
China-EU Leaders’Meetingreleased on December 3, 2007, both sides agreed to
establish a vice-premier-level China-EU high-level economic and trade dialogue
mechanism between China’s State Council and the European Commission,
designed to discuss a strategy for trade, investment and economic cooperation, to
coordinate both sides in projects in majorfields, as well as to study and develop
144 X. Hou