Regulation changes

Banking regulators may further loosen rules on foreign lenders dealing with renminbi business in response to claims by overseas players that the draft rule is too restrictive.

The China Banking Regulatory Commission (CBRC) and the Ministry of Commerce are likely to lower the minimum amount a foreign bank branch can accept for a single local renminbi deposit - originally set at 1 million yuan (US$125,000) - said a source from the regulatory body, adding that the two sides had yet to decide the specific amount.

The CBRC sent a draft version of the administrative rule on foreign banks to regulatory bodies and a group of foreign and domestic lenders for review in June.
China needs FDI

China still requires large quantities of foreign direct investment in the coming years in order to sustain its rapid economic growth, a high-ranking foreign trade official said last week.

Chai Haitao, director of the Chinese Academy of International Trade and Economic Co-operation, says that overseas investment, which last year totalled US$72.4 billion, has brought China a host of advantages such as capital, technology, jobs and improved skills.

New opportunities for overseas investment in China should meet the needs of the domestic market, such as the country's requirement for technological innovation, which is regarded as vital to boosting competitiveness, says Chai.

Health care boost

The government will bear a greater share of the costs for health care and basic treatment, and redress imbalances in access to medical services.

A blueprint for the implementation of the changes will be worked out by a high-powered panel set up recently, says Yin Dakui, president of the China Medical Doctor Association.

A long-standing grievance has been that most Chinese do not have access to affordable health care while a privileged few hog most of the resources, Yin says.

"The government must consider the issue of fairness while formulating a new health policy; and it must bear the cost of basic health care for all," Yin says, also a former vice health minister.

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