BANGKOK — United States officials pressed Beijing on critical market access issues for major financial institutions including Mastercard Inc. and Citigroup Inc. during at least two bilateral meetings with Chinese counterparts in Bangkok this week, according to a U.S. Treasury official. The diplomatic engagements underscore ongoing efforts by Washington to ensure the implementation of bilateral financial agreements previously discussed at the highest levels of government.
The Treasury delegation, led by Deputy Secretary Francis Brooke, held bilateral meetings with officials from the People’s Bank of China and the Chinese finance ministry on the sidelines of the Group of 20 finance meetings and the International Monetary Fund and World Bank annual gathering, the official said, speaking on condition of anonymity to discuss the closed-door diplomatic sessions.
The high-level talks explicitly included discussions regarding market access for prominent U.S. financial services companies, including Mastercard, Visa, and Citigroup. The official added that regulatory approval for these firms was part of a broader set of agreements reached during the historic meeting between U.S. President Donald Trump and Chinese President Xi Jinping during the latter’s state visit to Washington last month.
The sideline meetings held in Bangkok this week served to continue crucial discussions on implementing these deals, according to the Treasury official.
Representatives for the People’s Bank of China, China’s National Financial Regulatory Administration, the China Securities Regulatory Commission, Chinese embassies in Singapore and Thailand, the U.S. Treasury Department press office, and Visa did not immediately respond to requests for comment from CNBC regarding the Bangkok meetings. Meanwhile, officials at Citigroup and Mastercard declined to comment on the ongoing diplomatic and regulatory developments.
This latest diplomatic push follows a significant regulatory milestone achieved earlier in the month, marked by China’s October 13 approval for Visa Inc. to begin preparing for a wholly owned domestic card-clearing business. Under the terms of the decision, Visa has been granted up to a full year to prepare its operational infrastructure before it formally applies for an operating license, as outlined by the People’s Bank of China.
Over the years, China has opened substantial portions of its vast financial sector to foreign firms, a trend that accelerated notably around 2018 when Beijing began gradually lifting foreign ownership caps across a variety of financial services, including securities, futures, and fund management. Despite these structural openings, the Chinese government continues to maintain strict limits on cross-border capital flows and has kept state-backed domestic players firmly dominant within the domestic payments landscape.
Mastercard currently operates yuan card payments within mainland China through a local joint venture established with NetsUnion Clearing Corp., which officially commenced operations in 2024. However, the pending regulatory approvals and ongoing discussions are expected to allow major international payment networks to operate with greater independence and structural autonomy within the world’s second-largest economy.
Meanwhile, Citigroup is actively pursuing a wholly owned securities license to conduct a comprehensive range of financial businesses in the onshore market, including A-share brokerage, underwriting, research, and principal trading operations, according to two people familiar with the industry who requested anonymity to discuss private corporate matters. The Wall Street giant has already demonstrated its commitment to the expansion by hiring several dozen employees for its expanding China unit.
One of the two industry sources close to Citigroup revealed that the bank has ambitious plans to increase its China securities staff to approximately 100 employees as it anticipates the formal granting of the regulatory license. Citigroup initially submitted its formal application in late 2021, and reports from Reuters last month indicated that official approval from Chinese regulators could be imminent.
The financial diplomacy in Bangkok and the unfolding regulatory approvals are taking place against a backdrop of continued high-level geopolitical engagement. Presidents Donald Trump and Xi Jinping are widely expected to meet in person for the third time this year in Shenzhen, China, on the sidelines of the upcoming Asia-Pacific Economic Cooperation summit scheduled for November.
Observers of the bilateral economic relationship note that these developments reflect a generally stable trajectory in trade and financial ties between the two global superpowers.
"The move suggests the US-China trade environment remains benign, and Beijing is keen to keep up the momentum," said Dan Wang, China director at Eurasia Group.
While Wang characterized the licensing of U.S. financial firms as a "limited concession" on broader market access, she emphasized that it clearly signals China’s continued willingness to open up its economy. Furthermore, she noted that "this should marginally bolster investor confidence in Chinese assets" as international institutions navigate the complex regulatory environment in Beijing.
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