This work conducts a critical examination of Chinese foreign banking law in the context of the international convergence of supervisory standards and practices. If China is to develop a modern and viable banking sector, it needs to put in place a suitable legal infrastructure which is consistent with emerging international supervisory standards, WTO requirements and aspirations for financial sector liberalization. The author argues that the current foreign banking laws are fundamentally out of line with international standards and practices in a number of respects and that legislators and supervisors do not at present appreciate or cultivate commonly accepted supervisory values. The author therefore proposes a set of reforms that would at the same time create a legal environment for competitive equality between foreign banks and protect the safety and soundness of the Chinese banking system. The issues considered include the licensing process for the entry of foreign banks into the Chinese market, the ongoing regulation of foreign banks and foreign bank crisis management or bank failure resolution.