June 22, 2015

CONTACT: Laena Fallon, 202-457-8783

WASHINGTON, DC – 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.

In the letter, the Coalition writes: “A modern and competitive financial system, one that includes full participation by non-Chinese financial services institutions – banks, insurers, reinsurers, private pension providers (enterprise and group annuity), securities, futures, and asset managers – is imperative for China to continue to meet its domestic growth needs.  Increased competition from non-Chinese financial services institutions would also align with the Third Party Plenum’s pledge to allow market competition to play a ‘decisive role in the allocation of resources.’ Such competition would naturally allow for increased competition between U.S. and Chinese financial services institutions, as well as institutions from other jurisdictions, as Chinese entities seek to re-calibrate their activities to market-focused activities.  This shift will undoubtedly help to drive further market-opening reforms and liberalization.”

The full letter can be viewed here.

The Engage China Coalition includes the American Bankers Association, the American Council of Life Insurers, American Insurance Association, BAFT, The Council of Insurance Agents & Brokers, The Financial Services Forum, The Financial Services Roundtable, FIA, Insured Retirement Institute, The Investment Company Institute, Property Casualty Insurers Association of America, and Securities Industry and Financial Markets Association.