The WTO trade in services and the financial industry in China

In this project, we will go through the global trading environment and the World Trade Organization (WTO) in the 1990s. By doing this, we discover that trade in services is one of the emerging issue of international business in recent decades. The scope and the development trend of trade in services will be discussed. Among those activities covered by trade in services, one of the most influential and essential sector is financial services particularly in the banking sector. The trade in banking services in China is especially more dynamic than before. Therefore, we are interested in investigating the state of trade in services in Chinese banking industry. However, we find that there are lots of problems in China’s banking system during the transition period – from a centrally planned economy to a form of market socialism. After this, we analyze the pros and cons towards China under different policies implemented by the central government. We assume there will be three states, including banking liberalization and banking non-liberalization. Thereafter, we will evaluate the cost and value among the three states in order to suggest which one should be implemented. Moreover, we will review a planning to be beneficial for China to adopt the suggested state.