The European Union and United States said Thursday they had reached a deal with China over a WTO dispute on Beijing's restrictions on foreign financial news providers working in the country.
"Financial information suppliers such as Thomson Reuters, Bloomberg and Dow Jones will in future benefit from a new regulatory framework that will help to ensure a level playing-field for all operators in the Chinese market," the EU said in a statement.
The EU and United States filed their complaint back in March, and the dispute had been brewing since September 2006 when China renewed the monopoly held by state news agency Xinhua, which prevents foreign providers of financial information services from dealing directly with Chinese clients.
The EU said that the three parties signed a memorandum of understanding in Geneva on Thursday, whereby China agreed to put a new regulatory framework in place by June 1, 2009.
"Responsibility will pass from Xinhua news agency to a new, independent regulator and the requirement for foreign suppliers to operate through an agent will be removed," the EU said in a statement.
EU Trade Commissioner Caroline Ashton welcomed the deal, saying it "ensures that investors and market operators will be able to receive comprehensive and objective financial information.
"This shows what can be achieved when interested parties cooperate in search of solutions," she added.
The United States also expressed its satisfaction at the accord.
"We are pleased that the WTO dispute settlement mechanism has worked as intended, enabling the parties to reach a satisfactory resolution," Washington's top trade negotiator Susan Schwab said in a statement.
"China's commitment to establish an independent regulator in this sector is especially important. The independence of the regulator is critical to ensuring a legal environment that is free of damaging potential conflicts of interest," she added.
Ashton's predecessor as EU trade commissioner, Peter Mandelson, said in a statement that the deal would allow the three news organisations "to contribute to the development of China's financial markets, to the benefit of all businesses, banks and investors."
