American International Group Inc., New York, says it has received firm assurances from China that China will not require AIG to reduce ownership of any of its existing 100%-owned insurance operations in China.
China Insurance Regulatory Commission officials told AIG executives in a meeting that the company would be able to keep its 100%-owned 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.
What Your Peers Are Reading
But Reuters has reported confirmation from officials at the China Ministry of Foreign Trade and Economic Cooperation that China has agreed to preserve AIGs existing 100% ownership rights in China and permit AIG to continue to operate in the same way that it is now operating in China.