Citigroup's Adaptability in China Market Expansion

Topics: World Trade Organization, Bank, Financial services Pages: 4 (1225 words) Published: December 29, 2005
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 this case, China to Citigroup. The commitment schedule is the guideline, which determines the market access and national treatment obligations. This is known as most-favored nation (MFN) treatment. It is a general obligation that...

References: Conklin, David W. (2004). Case 30 Citigroup in Post-WTO China. Comprehensive Cases, pp 30-46. Retrieved December 8, 2005, from University of Phoenix, Resource, MGT578 – Strategy Formulation and Implementation.
Kynge, James (1999). Financial Times, Can Beijing make trade rules stick? p. 6
WTO Successfully Concludes Negotiations on Chinas Entry (September 2001). WTO NEWS: 2001 PRESS RELEASES Press/24317. Retrieved December 8, 2005, from http://www.wto.org/english/news_e/pres01_e/pr243_e.htm
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Mobile Payment Market in China
  • Essay about POCT Market in China
  • Essay about E-Commerce Services Market in China
  • Analysis of the Drink Market in China and the Expansion of Jdb Essay
  • Carsharing Market in China 2014-2018 Essay
  • china market Essay
  • Market Analysis China Steel Industry Essay
  • Essay about market research clothing in china

Become a StudyMode Member

Sign Up - It's Free