Influence And Countermeasures Of Foreign Banks On The Chinese Banking Sector

China has fully opened the banking sector to foreign capital since December 11, 2006 . From then on ,foreign banks in China have no geographical, business and customer restrictions.More and more foreign banks will enter China to develop business. The entry of foreign banks like a "double-edged sword".On the one hand ,it will bring about many opportunities to the development of China's banking sector, on the other hand,China's banking sector will face more severe challenges. How to seize the opportunities and how to face challenges has become an unavoidable issue.This paper analyzes several aspects of the impact of foreign banks to enter the China and tries to seek response strategy.This paper attempts to answer the following questions: What is the history of foreign banks development in China? What is the status of foreign banks?What are the advantages and disadvantages of foreign banks and China's banks for each? What is the impact on the China's banking sector of the entry of foreign banks?How should China's banks deal with the challenges? This paper is written focusing on a few issues above and given solutions to this problem according to the actual situation in China.This paper is divided into four parts: First, the development history of foreign banks in China; Second, the status and the comparison of foreign banks and China's banks and the third is the impact of the foreign banks on China's banking sector ; Fourth, it is how to deal with the impact of foreign banks on China's banking sector.The method of logical and historical and the school principle of the economics and finance and many other methods are used to analyze the questions in this paper.