China to Open Auto Insurance Market

China has agreed to an important financial sector reform by opening up its massive auto insurance market to foreign competition.

During a meeting with U.S. business chiefs and Chinese Vice President Xi Jinping, U.S. Vice President Joe Biden said China had indicated that it would move forward this year with tax reform to boost imports and domestic consumption, key goals sought by Washington.

“China’s also just told us it will open the third party liability auto insurance market to foreign companies,” said Biden.

David F. Snyder, vice president and associate general counsel at the insurer trade group American Insurance Association (AIA), called the move a “significant step forward as it represents the result of several years of diligent work by U.S. and Chinese negotiators.”