ABA, Groups Commend Policymakers on Phase 1 China Trade Agreement

The American Bankers Association, along with other members of the Engage China Coalition, wrote to Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer today thanking them for their work to include the financial services industry in the recent Phase One trade agreement signed between the U.S. and China.

In particular, the coalition welcomed the abolition of foreign equity caps, which would allow wholly U.S.-owned firms to participate in insurance, securities, fund management and futures sectors. The groups noted that “the outcome will enable our internationally competitive financial services providers to operate more freely and fairly in China than at any time previously.”

The groups also highlighted aspects of the agreement in need of further clarification and made recommendations on how to ensure the success of the commitments contained in the agreement. As the two nations move toward a Phase Two agreement, the coalition encouraged policymakers to continue working to reduce the barriers faced by non-Chinese entities seeking to operate in China.