China to open financial sector to foreign investors in 2020

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China to open financial sector to foreign investors in 2020

On the heels of the Chinese president Xi Jinping and his United States' counterpart Donald Trump agreeing to resume the trade talks between the two countries, Chinese premier Li Keqiang made another important announcement on Tuesday.

Keqiang has reportedly said that China will end its existing system of restrictions on foreign investment in the financial sector in 2020. Earlier, Chinese government officials had planned to end the restriction system in 2021.

By doing so, China is attempting to showcase to the world its interest in opening up its core sectors. Li's announcement came during the ongoing World Economic Forum in Dalian. "We will achieve the goal of abolishing ownership limits in securities, futures, life insurance for foreign investors by 2020, a year earlier than the original schedule of 2021," Li reportedly said.

One sector that will be opened up is manufacturing. Despite this move, analysts are sceptical about this reducing further economic and business tensions between the two countries. This is in line with recent developments following the talk between the countries' heads.

On Monday, speaking to reporters, Trump had said that any potential trade deal between the two nations would have to be advantageous to the United States as he felt the former trade deals had benefited China more.