China to Ease Auto Financing

China will let foreign automakers such as General Motors Corp. and Ford Motor Co. offer consumer loans, a breakthrough amid complaints from banks and insurers over delays in opening the financial services market.

The move, which China’s chief trade negotiator said would be implemented shortly, would boost automakers’ profits in the world’s largest potential car market.

“I would think that early next year the regulation will be in place, and the auto companies will establish their financing enterprises,” said Long Yongtu, China’s vice minister of foreign affairs and its chief trade negotiator, in an interview in Washington.

General Motors Acceptance Corp., Ford Financial Services and similar companies are still awaiting access to China one year after it joined the World Trade Organization.

Chinese lenders still finance foreign-auto sales, which are soaring.

China, with 1.3 billion people, has been using regulations to protect domestic firms from foreign competitors that offer banking, insurance and other financial services, U.S. and European groups say.

Long said China has had to implement, eliminate or change thousands of laws, rules and regulations to meet its WTO commitments to open trade in a range of goods and services.

“We are moving as quickly as we can,” he said.