For Economical Republicans, Federal Republicans and Liberals:


Also, Chinese financial market is recently fully opened to foreign banks. The world's biggest banks -- Citigroup Inc., HSBC PLC and Bank of America Corp. among them -- have spent billions of dollars and devoted huge resources to positioning themselves for this moment. Also, China recently buys nuclear power stations from America. This is expected to increase 5,000 American job opportunities immediately, according to Westinghouse.

Does China still have two types of currency, one for the Chinese(Renminbi) , as well as their foreign exchange currency? At the time I was there technically only FEC had any value outside the country. I am not an economist and did not fully understand why they did this but it was obviously to manipulate their economy and currency. As I recall FEC would fetch a much better exchange on the black market than its official exchange rate.

Nope, not these days. These days there's only one currency -the RMB.

From what I hear, they are planning on making the RMB fully convertible in a few year's time too ...

Disagree with you about the full accessability of Chinese financial markets, namely the lack of transparency rules. However, their financial system is getting better and is more open now than it was ten years ago.
Source

The foreign banks can do businesses in China independently, which is a big sign of financial open market. I am sure that Chinese government shall impose caution with foreign capital. America destroyed Japanese economy after the Plaza Accord in 1980s, also pumped money out of Southeast Asia in 1997. American economy weapon is even more dangerous than the war weapon.

Japan's problem came with the appreciation of its currency against the US dollar coupled with the Diatsu business inadequacies. The same goes for S Korea as well. BTW, I was against the 1997 accords because it did not help the financial markets in the long run, only a short term fix. In the next five years, the same countries will have the same problems if their currencies appreciate against the dollar or the Euro.

China is following through the prescribed plan set forth in the WTO accords. They are still not fully accessible with limited futures contract trades, equity markets, insurance, and other financial positions. The other problem still burdening the Chinese banks is the huge dead weight (non competing loans) that are affiliated with the Chinese markets. If this continues, they will face a crisis in an open market that may cripple the banking system in China.

Recently, Beijing issues seven industries that foreign investments cannot have more than 50% share, including weapon industry, telecommunication, mineral and mining, petroleum, electrical power systems.... Other than these seven, the restrictions will be lifted sooner or later depending on the financial safety.

The dead debt of Chinese banks has long been a problem. I think the banks can still operate due to Chinese high saving habits. I am not sure about the exact mechanisms there, could u please explain it to me how those bank debts work??

I can understand the military, but not telecommunications, natural resources, or power systems.

Telecoms, Mining and Power systems are backbones of domestic economy. If they break up, all parts of the economy will stop functioning. Also, these industries require cooperation between different provinces. Sometimes, it is just easier to arrange them in a national way.

There are legal ways to help industries without being too protectionist to help safeguard the public domain. However, being protectionist, such as limiting on how much foreign corps can own a business in an industry, is not the way to go, IMHO.

I just feel that these projects are like railway systems and post systems. U have to coordinate between different provinces, tens of hundreds of cities and towns. It is more efficient to arrange it in a national manner. Also, to fully privatize these industries, it has to go hand in hand with the political reform.

For power systems and mining, I also agree that these two should be national owned. For Telecoms, I hear that it is the result from the negotiation between China and America. America can choose one between financial insurance and telecoms, and America chose finance.