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Legal Matters

China’s banking decision opportunity for Iran

Beijing, News sources reported that the Chinese government is planning to allow foreign banks to operate and set up branches in the country, which could largely eliminate banking restrictions by expanding banking ties between Iran and China.

Experts say the realization of this move is a strategic change in China's financial and banking sector, which is the secondlargest economy in the world and intends to end the US trade war in various ways.

According to media reports, banks that are authorized to set up a branch in China can take out a bank deposit of over 500,000 yuan ($72,000) from Chinese citizens.

This action could be useful for developing Iran's banking activities in China, so that businessrelated activities can be done through these banks or through the establishment of branches in China and provide an extraordinary opportunity to develop new banking channels with Iran.

Nearly four years ago, it was announced that the Bank of Commerce and Industry of China, including the country's largest and most prestigious banks, intends to create branches in Iran. At the same time, it was emphasized that the entry of this bank to Iran could promote the level of technical banking services. Establishment of the bank was not realized, but maybe now the Chinese government has an opportunity to set up branches of Iranian banks in the country.

The Bank of Tejarat (Commerce) of Iran is among the banks that are calling for the opening of a branch in China. In 2002, the bank obtained a license to operate in China, and since then it has been seeking to open a branch in Beijing and continues to pursue it, but with difficult circumstances and the laws of the Banking Supervision Commission in China and some other cases, the bank has not yet been licensed.

Source: Islamic Republic News Agency IRNA


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