Washington , D.C. (June 19, 2008) - The fourth U.S.- China Strategic Economic Dialogue (SED) concluded with some progress for U.S. life insurers. ACLI is encouraged that the SED joint statement includes language on life insurance priorities.
The Treasury Department and United States Trade Representative (USTR) have been invaluable in advocating ACLI's top four priorities: removal of equity limitations; licensing of qualified U.S. companies to provide enterprise annuities; removal on restrictions that will allow foreign companies to be licensed to invest insurance assets in international markets; obtaining a commitment that foreign financial institutions may continue to make multiple investments in more than one insurer.
ACLI President and CEO Frank Keating said, "We appreciate the continued advocacy by the U.S. government to resolve the issues our industry faces in China, and we are encouraged by the willingness of the Chinese government to discuss these concerns. We stand ready to work with both governments to increase the role our products and services can play in helping Chinese workers and their families to increase their financial and retirement security."
Additionally, the United States and China announced their agreement to begin negotiations for a bilateral investment treaty (BIT). While incremental, these results demonstrate the value of the SED and show the need to continue such high level dialogues in the future. Future negotiations must focus on removing equity limitations on U.S. life insurers in China, and on realizing China's goal of providing their people with a broad and deep mechanism to accumulate retirement security assets. Life insurance and pension products must continue to be an integral part of the ongoing conversation with China.
The U.S. financial service industry remains committed to pressing China to remove equity limitations on foreign investments and to rapidly license qualified U.S. companies to provide enterprise annuities products and services.
"While these announced negotiations and investment changes are a major development for the U.S. - China relationship, the process will be lengthy and require a strong commitment from the U.S.," said Keating. "I am hopeful the next President and his administration will continue the SED and recognize the vital role trade with China plays for U.S. companies and our economy."
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The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association whose 353 member companies account for 93 percent of the life insurance industry’s total assets in the United States, 93 percent of life insurance premiums and 94 percent of annuity considerations. In addition to life insurance and annuities, ACLI member companies offer pensions, including 401(k)s, long-term care insurance, disability income insurance and other retirement and financial protection products, as well as reinsurance. ACLI's public Web site can be accessed at www.acli.com.