"The credit environment has really improved a lot in China's mainland. The central bank has set up many platforms and systems, forcing businesses to value clean credit records," Xu said.

Xie added, "Jiangsu Province supports expansion of foreign bank services, but is strict with approving of foreign banks' branches."

The Chinese government should guard against blind competition while staying open towards foreign banks, Zhang said.

Also, foreign banks face difficulties. "The biggest problem is a talent shortage. China's local banks have been expanding fast, bringing fierce competition," Xu said.

(Xinhua News Agency December 12, 2010)