Engage China News and Activities
Press Release: Engage China Coalition Encourages Treasury Secretary Lew to Push for Continued Financial Market Access Reforms During U.S.-China S&ED
ENGAGE CHINA, a coalition of 12 financial services trade associations united in support of high-level engagement between the United States and China with an emphasis on continued financial sector reform in China, submitted a letter to U.S. Treasury Secretary Jack Lew in advance of the seventh round of the U.S.-China Strategic and Economic Dialogue (S&ED) taking place in Washington, DC this week. In the letter, the Coalition described the critical importance of continued accelerated reform and modernization of China’s financial system, including a level playing field for foreign participants in China’s financial services marketplace. Additionally, Engage China called for continued coordination between the two nations as they work to achieve an important, high-level U.S.-China bilateral investment treaty (BIT), as it would yield significant benefits for both the Chinese people and for the American economy.
Engage China Letter to Treasury Secretary Lew Ahead of Seventh Round of U.S.-China Strategic and Economic Dialogue
"In anticipation of the upcoming U.S.-China Strategic and Economic Dialogue (S&ED) meetings in Washington, we write to re-emphasize the critical importance of continued accelerated reform and modernization of China’s financial system, including a level playing field for foreign participants in China’s financial services marketplace. Additionally, we ask you to raise the mounting urgency of addressing threats to cyber and technology security in the context of China’s asserted national security policies."
In the News
BEIJING — The United States and China have begun formal talks on demands for market access for an investment treaty, officials from the two countries said on Friday, calling it a new phase in negotiations that could set the scope of an eventual deal.
The efficiency of China’s economy would likewise improve if the country reformed its financial sector, encouraging competition (and empowering Chinese consumers) by granting more private banking licenses, liberalizing interest rates on deposits, and ending preferential access to credit for state-owned firms. Those subsidies create an overabundance of cheap money that many Chinese companies depend upon. Mispriced capital impedes the evolution of China’s economy, prevents the efficient use of capital, and financially constrains some of the economy’s best performers—private companies, which are already responsible for more than 70 percent of Chinese jobs.