The Engage China coalition of 12 financial trade associations, including ABA and BAFT — ABA’s global transaction banking subsidiary — yesterday called on the Trump administration to continue working to create a level playing field and increase market access for financial services firms seeking to do business in China.
The groups noted that American financial services companies — including banks and insurance providers — continue to face rising operational costs and difficulties accessing Chinese financial markets. For example, while the Chinese financial system has experienced significant growth in recent years, foreign banks’ market shares have declined; foreign investors hold only two percent of the onshore bond market and just three percent of the market capitalization of equity shares.
The coalition urged the administration to prioritize the elimination of ownership restrictions and other barriers as it begins the U.S.-China Comprehensive Economic Dialogue this summer, adding that doing so would be advantageous for both the U.S. and Chinese economies. They also expressed support for ongoing engagement with China on economic issues, as well as continued negotiations of the U.S.-China Bilateral Investment Treaty.