US officials raised market access for Mastercard Inc. and Citigroup Inc. during bilateral meetings with Chinese counterparts in Bangkok this week, CNBC reported a US Treasury official as saying, as Washington and Beijing work to implement agreements reached by their leaders last month.
A US Treasury delegation led by Deputy Secretary Francis Brooke held talks with officials from the People's Bank of China (PBOC) and China's finance ministry on the sidelines of the G20 finance meetings and the annual IMF-World Bank gathering. The discussions covered market access for US companies, including Mastercard, Visa and Citigroup, according to the official, who spoke on condition of anonymity because the meetings were held behind closed doors.
The official said regulatory approval for US financial firms was among the terms agreed upon during Chinese President Xi Jinping's state visit to Washington last month, when he met US President Donald Trump. The Bangkok meetings continued discussions on implementing those agreements, CNBC reported.
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Visa Approval Puts China Market Access In Focus
The discussions follow China's October 13 approval for Visa Inc. to begin preparations for a wholly owned domestic card-clearing business. The company has up to one year to complete the preparatory work before applying for an operating licence, the PBOC has said.
China has gradually opened much of its financial sector to foreign companies since 2018, easing ownership restrictions in areas such as securities, futures and fund management. However, controls on cross-border capital flows remain in place, while state-backed domestic firms continue to dominate the payments industry.
Mastercard currently processes yuan-denominated card payments in China through a local joint venture with NetsUnion Clearing Corp., which began operations in 2024. Approval for an independent operation would allow the payments company to operate separately in the Chinese market, according to a person familiar with the matter.
Citigroup Seeks China Securities Licence
Citigroup, meanwhile, is seeking a wholly owned securities licence to offer onshore services in China, including A-share brokerage, underwriting, research and proprietary trading, according to two people familiar with the industry who spoke on condition of anonymity.
The bank has hired several dozen employees for its China operations and plans to expand its securities team to around 100 people, one of the sources said.
Citigroup submitted its application in late 2021. Reuters reported in September that regulatory approval could be granted soon.
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Trump, Xi Expected To Meet In November
Trump and Xi are expected to meet in person for the third time this year in November in Shenzhen, China, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit.
The latest discussions indicate continued engagement between the two countries on financial market access. Dan Wang, China director at Eurasia Group, said the development suggested that the US-China trade environment remained benign and that Beijing was keen to maintain the momentum.
Wang described the licensing of US financial firms as a “limited concession” on market access, but said it reflected China's continued efforts to open its markets and could provide a modest boost to investor confidence in Chinese assets.
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