Global Trade Alert

On 30 March 2012, the State Council announced an amendment to the "Regulation on Compulsory Traffic Accident Liability Insurance for Motor Vehicles," which was originally published on 1 March 2006.
 According to the to new regulation, the requirement of a "Chinese-funded insurance companies" has been removed from Article 5. Prior to the change,this passage was seen as the key entry barrier for foreign traffic accident liability insurance companies to China.
The revised Article 5 still demands that all insurance providers need to obtain the approval from the China Insurance Regulatory Commission prior to the sale of their insurance products in China. The new regulation will come into force on 1 May 2012.
 
The affected trading partners are selected based on the "2012 FDI statistics" from the Ministry of Commerce. These countries account for 91% of the FDI in China in 2012.