Led by the US Treasury and People’s Bank of China, the fifth Financial Working Group meeting recently took place in Shanghai. These engagements are a key channel for promoting cooperation on financial sector stability, fighting climate change, and combatting money laundering.…
— Ambassador Nicholas Burns (@USAmbChina) August 19, 2024
The U.S. and China have signed an agreement to strengthen cooperation on financial stability during a two-day meeting in Shanghai last week. The fifth meeting of the U.S.-China Financial Working Group was described as “professional, pragmatic, candid, and constructive” by the People’s Bank of China. The working group was co-chaired by Xuan Changneng, Deputy Governor of the People’s Bank of China, and Brent Neiman, the U.S. Treasury Department’s Deputy Under Secretary for International Finance.
Officials from the Federal Reserve, U.S. Securities and Exchange Commission, and China Securities Regulatory Commission also attended the meeting.
Translation:
"President Xi. Please dump your oil inventories on every other Monday and Friday going into November 5th. If I am re-elected I will rollback your tariffs to allow you to compete with Elon. Sincerely, Secretary Yellen."
🤣https://t.co/wKOcEdsfF2— Quinn Thompson (@qthomp) August 19, 2024
The two sides discussed a wide range of topics, including capital markets, cross-border payments, monetary policy, systematically important global banks, financial institutions’ operational resilience, and climate risk stress testing. They signed an agreement to enable timely and smooth communication channels between the financial management departments of both countries when financial institutions face operational risks and during times of financial stress.
Financial stability cooperation discussed
The meeting also featured the first financial institution roundtable, involving Chinese and American financial institutions. The roundtable focused on sustainable finance, sharing experiences and practices, and exploring potential cooperation opportunities.
China and the US have agreed to further strengthen cooperation to maintain financial stability amid intensified fluctuations in the global financial markets at the 5th meeting of the China-US Financial Working Group held last week in Shanghai. #ChinaUShttps://t.co/OBwCEpSHfn pic.twitter.com/1SrbP3ycKw
— Xi's Moments (@XisMoments) August 19, 2024
The China-U.S. financial working group held its fifth meeting in #Shanghai from Thursday to Friday, discussing a range of issues related to the financial policies of both countries, according to China's central bank. pic.twitter.com/gYHfPQWSDr
— China News 中国新闻网 (@Echinanews) August 19, 2024
A technical expert group presented a report on various issues, such as a resolution mechanism for global systemically important banks, the operational resilience of financial institutions, climate risk stress testing, and supervision on cross-border payments and settlement. This cooperation marks a significant step in strengthening financial stability and enhancing bilateral ties between the U.S. and China, the world’s two largest economies. U.S. Treasury Secretary Janet Yellen and Chinese Vice Premier He Lifeng have established an understanding for regular meetings between Treasury officials and officials from the Ministry of Finance and People’s Bank of China at a vice minister level.
The agreement comes amid ongoing disagreements between the two nations on various issues, including industrial policy and advanced technology investments. However, the recent talks demonstrate a willingness to improve communication and coordination, particularly during times of financial stress, to ensure stability in both economies.
