China's Free Banking policy

To all those that say that by allowing China to enter the free market system it would force the PRC to end their restrictive government regulations, just read about the new rules that China is thinking of enacting. Currently China wants foreign banks to go to poorer western regions that do not have as many banking options, in order to prevent them from competing with local Chinese banks in major prosperous eastern provinces. In addition, they are thinking of preventing foreign banks from being able to buy equity stakes in more then two Chinese banks. This would prevent foreign banks from taking over local banks and knocking them out of competition.

To me that does not look like China is following a free trade system, where government tries to lessen regulations. Instead it looks like a communist controlled economy where the government wants to be in control of everything including the banking industry.
Amazingly the rest of the world turns a blind eye to these blatant offences of World Trade Organization rules. I'd understand if China was trying to cover this up, but public officials are stating that the reason they are doing this, is because China's local banks are not strong enough to stand up to the foreign competition.

If the United States does the same thing to protect its steel industry the whole world cries foul, but if China enacts protectionist policies everyone just ignores it and try to find an excuses for China. I'd say that’s a double standard if I ever saw one.