U.S. Officials Discuss Market Access for Mastercard and Citigroup in Bangkok Meetings
- U.S. officials urged China to improve market access for Mastercard and Citigroup during meetings in Bangkok.
- This dialogue followed an agreement made between President Trump and President Xi Jinping regarding regulatory approval.
- Visa received approval on October 13 to prepare a domestic card-clearing business in China.
BANGKOK – U.S. officials engaged in discussions with representatives from Beijing regarding market access for Mastercard Inc and Citigroup Inc during at least two bilateral meetings held this week, according to a U.S. Treasury official. The meetings were conducted on the sidelines of the Group of 20 finance events and the IMF-World Bank annual gathering.
A Treasury delegation, led by Deputy Secretary Francis Brooke, met with officials from the People’s Bank of China and the finance ministry. The official, who spoke on the condition of anonymity, noted that the discussions focused on market access for U.S. companies, including Mastercard, Visa, and Citigroup. They highlighted that regulatory approval was part of an agreement reached during the recent meeting between Presidents Donald Trump and Xi Jinping during the latter’s state visit to Washington last month.
The Bangkok meetings aimed to advance these agreements. Responses from various entities, including the People’s Bank of China, China’s National Financial Regulatory Administration, China Securities Regulatory Commission, and representatives from Visa, have not been received as of yet. Both Citigroup and Mastercard declined to comment.
This dialogue builds on China’s approval on October 13 for Visa Inc. to initiate preparations for a wholly owned domestic card-clearing business. Visa is allowed up to a year to prepare before applying for an operating license, as per guidance from the People’s Bank of China.
Since 2018, China has gradually opened its financial sector to foreign firms by lifting foreign ownership caps on services like securities, futures, and fund management. However, limitations on cross-border capital flows remain, and state-backed domestic players continue to dominate the payments sector.
Currently, Mastercard operates yuan card payments in China through a local joint venture with NetsUnion Clearing Corp., which commenced operations in 2024. The anticipated approval would enable it to operate independently.
Citigroup is pursuing a wholly owned securities license to facilitate A-share brokerage, underwriting, research, and principal trading in the onshore market, according to two industry sources who chose to remain anonymous. One source indicated that Citigroup plans to expand its securities team in China to approximately 100 staff. The bank submitted its application in late 2021, and reports suggest that approval may be forthcoming soon.
Presidents Trump and Xi are expected to meet in Shenzhen, China, for the Asia-Pacific Economic Cooperation summit in November, marking their third in-person meeting this year.
Dan Wang, China director at Eurasia Group, noted that, “The move suggests the US-China trade environment remains benign, and Beijing is keen to keep up the momentum.” She described the licensing of U.S. financial firms as a “limited concession” on market access but emphasized that it reflects China’s ongoing efforts to open its market, which could enhance investor confidence in Chinese assets.
News Courtesy of CNBC
