BANGKOK – U.S. officials raised market-access concerns involving Mastercard Inc and Citigroup Inc with Beijing during at least two bilateral meetings in Bangkok this week, according to a U.S. Treasury official.
The Treasury delegation, headed by Deputy Secretary Francis Brooke, met with officials from the People’s Bank of China and China’s finance ministry on the sidelines of this week’s Group of 20 finance meetings and the annual gathering of the IMF and World Bank, the official said. The official spoke on condition of anonymity because the discussions were held behind closed doors.
The discussions covered access to China’s market for U.S. companies, including Mastercard, Visa and Citigroup. Regulatory approval was included in an agreement reached when President Donald Trump met Chinese President Xi Jinping during Xi’s state visit to Washington last month, the official said.
The Bangkok meetings focused on how to carry out those agreements and continued the implementation talks, according to the official.
The PBOC, China’s National Financial Regulatory Administration, the China Securities Regulatory Commission, the Chinese embassies in Singapore and Thailand, the U.S. Treasury press office and Visa did not immediately respond to CNBC requests for comment. Citigroup and Mastercard declined to comment.
The latest developments follow China’s Oct. 13 approval allowing Visa Inc. to begin preparations for a wholly owned domestic card-clearing business. The company has up to one year to prepare before applying for an operating license, according to the PBOC.
China has gradually opened large parts of its financial sector to foreign companies since 2018, easing ownership restrictions in areas including securities, futures and fund management. However, Beijing continues to restrict cross-border capital flows, while state-backed domestic firms remain dominant in 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. The pending approval would enable Mastercard to operate independently in the country, the person said.
Citigroup, which has recruited several dozen employees for its China business, is seeking a wholly owned securities license. The approval would allow the bank to conduct A-share brokerage, underwriting, research and principal trading in China’s onshore market, two people familiar with the industry said. They requested anonymity because they were discussing private matters.
One person close to Citigroup said the bank intended to expand its China securities team to roughly 100 employees.
Citigroup submitted its application in late 2021. Reuters reported last month that approval could be granted soon.
Trump and Xi are expected to hold their third in-person meeting of the year in November, when they are scheduled to attend the Asia-Pacific Economic Cooperation summit in Shenzhen, China.
“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.
Approving licenses for U.S. financial companies represents a “limited concession” on market access, Wang said. Still, it indicates that China is continuing to open its economy and “should marginally bolster investor confidence in Chinese assets.”
