Last week’s bilateral talks with President Donald Trump and Chinese President Xi Jinping saw movement toward financial markets openness sought by the Engage China coalition, including greater market access for U.S. banks and insurers, according to news reports. China is said to be willing to make long-sought concessions on strictures such as ownership limits for foreign financial companies.
Engage China, a group of 12 financial trade associations including ABA and BAFT, ABA’s global transaction banking subsidiary, wrote to Trump last week pointing out that many challenges still exist for foreign banks in China’s financial markets.
While the Chinese financial system has almost tripled since 2007, the groups noted that foreign banks’ market share has declined and their participation in Chinese capital markets has remained low while operational costs have increased. They encouraged the administration to establish a platform for regular engagement with China on economic issues. For more information, contact ABA’s Bob Davis.