NU Online News Service, Sept. 5, 4:30 p.m. – American International Group Inc., New York, says it has received firm assurances from China that AIG will not be required to reduce ownership of any of the company’s existing 100%-owned insurance operations in China.
China Insurance Regulatory Commission officials told AIG executives in a meeting that the company would not be forced to reduce any part of its 100% Chinese insurance operations, according to AIG.
The meeting followed a Sept. 4 report in the Wall Street Journal quoting anonymous CIRC sources as saying that AIG would be required to relinquish its existing 100% ownership rights as a condition for China gaining admission to the World Trade Organization.
Reuters has published reports indicating that CIRC officials are still planning to let AIG keep 100% ownership rights.
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Officials at the China Ministry of Foreign Trade and Economic Cooperation confirmed that China has agreed to preserve AIG’s existing 100% ownership rights in China and plan to allow AIG to continue to operate in the same way that it is now operating in China, according to a Reuters report.