Both the EU and the United States have started to push China to open up its financial services as part of its membership of the World Trade Organizations (WTO), writes the International Herald Tribune.
China's information monopolist Xinhua is trying to expand its position in the financial services and - at least in theory - Chinese enterprises can only get access to the blessings of Reuters, Dow Jones, Bloomberg and other financial information services through an outlet of state-owned Xinhua. So in legal terms the regulator (the state) is monopolizing the financial information services.
It is an old debate that emerges every time when Xinhua is moving on this lucrative market, but needs a few remarks.
First, the practical implications of this monopoly are limited. Foreign companies can easy subscribe to the foreign services outside China and in real life Chinese companies can do the same, since most who need those services will have at least a subsidiary in Hong Kong. Not being able to set up an office in the Shanghai stock exchange is of course a nuisance, but that seems to be part of the game as it always has been played.
The W.T.O.-agreement has always left out the media industry from the discussions, since it would be clear that China would never agree on a level playing field for the media. That has always been accepted by the other countries, just as other industries, considered crucial for its defense, were excepted.
Giving up on the monopoly on financial media would open the box of Pandorra, China's negotiators tried to keep closed during those lengthy negotiations. When the financial media are no longer regulated, it is very hard to keep the information monopoly in other fields of the media industry.
So, it still is laudable that both the EU and the US are trying to push the envelope, but it seems a rather symbolic effort. China, on its part, would rather leave the W.T.O. than give up on its media control. Nobody is willing to to that far, and China's negotiators at the W.T.O. will know that.
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