We favored a significant transition period, so as to allow firms flexibility in adjusting to the new regime through such means as running off higher risk-weighted assets, adjusting their business models gradually, or using retained earnings to add any new capital that might be required under the new rules.
Chinese financial market has had much interaction with its foreign counterparts, a natural process of market development and selection, but there are still rooms and needs for countries to improve their market entry regulations. China committed itself to further open-up in the 5-year transitional period when it joined the WTO. The Chinese government has reiterated the policy to further open-up in various important documents.