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Financial industry is the core of the economy. China has undergone several crucial developments such as reforming and opening up, accession to WTO, and establishment of the free trade zone, and gradually improves the financial system, legal and compliance, and financial regulation to promote a sound environment. Especially in the field of the financial system, China encourages foreign investment, improves qualification of the state-owned banks, and gets over with centralized management. Furthermore, the government allows opening up medium-size private and rural banks and establishes the Central Bank as the center and state-owned banks as the main body, shunt policy finance and commercial finance for multi-level banking system. For the measures of financial legal system, China has promulgated various preferential measures for citizen and foreigner and built up the normative system to protect securities investors, insured, and bank depositors. In the field of financial regulation, China strengthens international cooperation to import the norms of international financial regulations for their domestic system and to avoid systemic financial risk.
China is the second largest economy in the world and is not only Taiwan's largest exporting country but also the main market for Taiwanese businessmen and banks. In the past thirty years, the cross-strait exchanges process from nongovernment to official contact and lead to get close in the relations of finance and economy, especially during eight years after 2008. The author as a bank practitioner ponders the progress of reforming and opening in China recently and thinks that it is worth to discuss various developing plans since the beginning of 12th five-year plan regarding its impact for the cross-strait’s finance and economy. After a detailed research for this theme, the author found that China’s financial and regulatory system still have some defects which possibly correct from our practical experience. On the contrary, Taiwan can attend its FTA, the Belt and Road, AIIB, and other macro plans to reinforce our opportunities and market deficiencies as well.
The author personally expects that the cross-strait can continue to maintain good and interactive relations after the third rotation of ruling Party and create a win-win situation to promote economic development.
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