CWR > Volume 9(2); 2023 > Article
Research Article
Published online: September 1, 2023

The New Financial Service Clause: A Window for Financial Innovation or a Pandora’s Box for Financial Regulation in China?

Jiaxiang Hu
Shanghai Jiao Tong University Law School
No.1954 Huashan Road, Shanghai 200030 China.
Corresponding Author:

ⓒ Copyright YIJUN Institute of International Law. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License ( which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.


The positive-list and negative-list modes of financial regulation differ in terms of which sectors are open to foreign services and suppliers. In the positive-list mode, only the listed sectors are accessible to foreign entities, whereas in the negative-list mode, all sectors are open except for those explicitly prohibited by law. Recent trade agreements such as RCEP, CPTPP, and USMCA have moved away from positive-list mode, especially in financial services regulation. While they do not adopt the negative-list mode either, they introduce new financial service clauses that facilitate market access for innovative financial products. These agreements also serve as a benchmark for opening up other sectors. They will continue to offer financial products, but their product types and transfer forms will differ from current financial services. China iscreating significant challenges in establishing a correct understanding of the new financial services clause, developing a robust regulatory system, and mitigating risks associated with opening the financial services market.

Keywords : New Financial Service, Financial Innovation, RCEP, CPTPP, USMCA, Trade in Services

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