What arguments can be put forward against the desire of the Chinese authorities to hinder the liberalization of the financial sector?
The reasons PRC regulators may seek to slow liberalization can be countered with the argument that foreign involvement will increase the development of a professional managerial culture with institutional motivations, which will strengthen stability. Corruption will be driven out of the market as investment funds flow to more responsible players and regulators themselves will benefit from better financial information. Indeed, China needs foreign competition for precisely the reasons it fears it.
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