Citigroup's Adaptability in China Market Expansion
Abstract
In 2001, China became a member nation of the World Trade Organization (WTO). Case analysis of Citigroup in Post-WTO China, proves that Citigroup displayed adaptability in its attempt to expand operations in China. In addition, information is included regarding historical development in business processes needed for such an expansion. Lastly, WTO information regarding commitments made by China to liberalize its marketing regime displays the opportunities made available to Citigroup.
Citigroup's Adaptability in China Market Expansion
On September 17, 2001, the World Trade Organization concluded negotiations on China's terms of membership of the WTO. For acceptance into the WTO China had to agree to certain changes to how it does business. China agreed to undertake a series of important commitments to open and liberalize its regime in order to better integrate in the world economy and offer a more predictable environment for trade and foreign investment in accordance with WTO rules (WTO NEWS: 2001 PRESS RELEASES Press/243, 2001). Among these is the following commitment involving foreign financial institutions:
Upon accession, foreign financial institutions will be permitted to provide services in China without client restrictions for foreign currency business. For local currency business, within two years of accession, foreign financial institutions will be permitted to provide services to Chinese enterprises. Within five years of accession, foreign financial institutions will be permitted to provide services to all Chinese clients ( WTO NEWS: par. 5)
Establishing commitment affords a foreign agency equal right in the business environment of the host country? in t ...