My new article in EuroBiz says:

According to China's WTO accession agreement in 2001, Beijing agreed to open its banking sector to full foreign competition starting on December 11, 2006. But recent state media reports say Chinese authorities are formulating new regulations that could hamper the efforts of overseas banks to attract retail customers. Some banking analysts speculate that Beijing has drafted the new rules in a bid to contain the influence of foreign banks in China, according to the International Herald Tribune.

Chinese financial regulators plan to impose tighter restrictions on foreign banks trying to get a slice of the country's huge pile of local currency deposits, worth an estimated US$2 trillion. For the more than 70 foreign banks that operate about 230 branches in the country, the new regulations could limit future expansion plans into smaller second- and third-tier cities.

To read more:

http://www.sinomedia.net/eurobiz/v200612/bank0612.htmlhttp://www.sinomedia.net/eurobiz/v200612/bank0612.html