Source: asiainsurancereview.com

China’s top insurance regulator, the CBIRC, announced last Friday that new national security reviews have been added to rules on foreign ownership in an insurance business even as it removes the 51% cap on foreign ownership.

The CBIRC said in a statement that a statute that bars foreign investors from taking a stake of over 51% in an insurance company has been deleted, as part of a major revision to the country’s regulations on foreign insurance companies operating in the domestic market, reported Global Times. While market access has been expanded, the revised regulations contain a newly added clause which states that if an foreign-funded investment “affects or could affect national security, a foreign investment security review should be conducted in accordance with the law”.

The revision is in line with China’s overall push to bolster national security in the face of looming risks, as recent key documents called for incorporating both development and security in all aspects of China’s policies.