China's Ministry of Commerce has recently announced its intention to completely open up the nation's leasing industry to allow foreign investors to establish wholly owned companies there. The ministry had begun to allow foreign investors to start general leasing services there as early as 2003, and now the Beijing Leasing Association is looking into the area of financial leasing. Two U.S. leasing giants, General Electric and Caterpillar, have already won approval to open wholly owned leasing operations in China, paving the way for other foreign companies, including banks, leasing firms, and manufacturers, to do the same. In 2005, China's leasing industry is expected to have over 45 foreign-invested leasing companies in operation. Despite the increasingly open policies toward foreign investment in the Chinese leasing industry, some regulatory hurdles remain, raising continuing debates throughout the country. Industry expert Sha Quan says Chinese regulators are likely to remain cautious with their license approvals, even after the industry opens up to financial leasing firms.