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US-China relations
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Explainer | What are some of the latest concessions in US-China relations ahead of Hawaii talks?

  • China continues to invite US companies like AmEx to access its burgeoning domestic financial market
  • Nasdaq remains open to Chinese companies as Dada, Genetron raise fresh capital this month

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Secretary of State Mike Pompeo shakes hands with Yang Jiechi, a member of the Political Bureau of the Chinese Communist Party during their meeting in Beijing in October 2018. Photo: AP
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The world’s two largest economies may be caught up in tensions over trade and the coronavirus pandemic, but some signs suggest both sides are seeking to mend ties on the business front.
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Recent concessions include wider access to China’s onshore financial market and the removal of some two-way air travel restrictions, despite the uneasy political undercurrents.

Here are some notable events to consider ahead of a meeting between US Secretary of State Mike Pompeo and China’s top diplomat Yang Jiechi in Hawaii.

China further opens up its domestic financial market to foreign investors

China has given foreign investors wider access to its burgeoning domestic markets even before the US-China trade started. The trade war of the past 18 months or so has seen more efforts towards the goal.

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Last January, China agreed to lift restrictions in almost all sub-sectors of its financial markets welcoming foreign financial services providers including banks, asset management, insurance, and payments to enter its US$45 trillion market.

Last week, American Express was given approval to launch bank card clearing services in mainland China, becoming the first foreign payment network to process domestic transactions in yuan. The New York-based company signed a 50-50 joint venture in 2018 with Chinese fintech firm LianLian DigiTech to create a network.
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