A significant development has been announced overnight that Goldman Sachs will take full ownership of its securities joint venture in China.
CEO David Solomon said the development pointed to “ongoing reforms under way in China’s capital markets and continued robust economic growth”.
As of April of this year foreign firms have been able to apply for full ownership in China. This was always going to happen but China had to have in place a proper supervisory process. No wild overnight overnight opening of the doors. That is not China’s way. Step by step, China is addressing the obstacles experienced by Western companies who are keen to play a bigger role in China.
Change is underway. Foreign companies want a bigger stake in China and China wants them to come. Settling the rules takes time as China grows in knowledge and experience. A process is underway as foreign businessman want to do more business in China – just as politicians seek to “de-couple”. The struggle between business and politicians arises because the two have conflicting agendas – More with China v Less with China. Who will win?