The fifth meeting of the Financial Working Group, spearheaded by the U.S. Treasury and the People’s Bank of China, was held recently in Shanghai. These discussions serve as a vital conduit for fostering collaboration on financial system stability, climate action, and combating money laundering.…
— Ambassador Nicholas Burns (@USAmbChina) August 19, 2024
During a two-day summit in Shanghai last week, the U.S. and China reached an agreement aimed at reinforcing collaboration on financial stability. The fifth session of the U.S.-China Financial Working Group was characterized by the People’s Bank of China as “professional, pragmatic, candid, and constructive.” The meeting was co-chaired by Xuan Changneng, the Deputy Governor of the People’s Bank of China, alongside Brent Neiman, Deputy Under Secretary for International Finance at the U.S. Treasury Department.
Representatives from the Federal Reserve, U.S. Securities and Exchange Commission, and the China Securities Regulatory Commission were present at the meeting.
Translation:
“President Xi. Please discard your oil reserves on every other Monday and Friday leading up to November 5th. If I regain my position, I will retract your tariffs to enable you to compete against Elon. Best regards, Secretary Yellen.”
🤣https://t.co/wKOcEdsfF2— Quinn Thompson (@qthomp) August 19, 2024
The agenda comprised a variety of topics ranging from capital markets to cross-border payment systems, monetary policy, globally significant banks, operational resilience of financial institutions, and climate risk evaluations. An agreement was also reached to facilitate efficient and timely communication between the financial management bodies of both nations whenever financial institutions encounter operational challenges or during financially stressful periods.
Exploration of financial stability collaboration
The assembly also marked the inaugural roundtable for financial institutions with participation from Chinese and American entities. Discussions at the roundtable addressed sustainable finance, experience sharing, best practices, and the pursuit of cooperative possibilities.
China and the U.S. have consented to enhance their collaboration in preserving financial stability, especially in light of the heightened fluctuations in global financial markets, during the fifth meeting of the U.S.-China Financial Working Group last week in Shanghai. #ChinaUS https://t.co/OBwCEpSHfn pic.twitter.com/1SrbP3ycKw
— Xi’s Moments (@XisMoments) August 19, 2024
The fifth session of the China-U.S. financial working group convened in #Shanghai from Thursday to Friday, addressing a variety of topics pertinent to the financial strategies of both nations, as per China’s central bank. pic.twitter.com/gYHfPQWSDr
— China News 中国新闻网 (@Echinanews) August 19, 2024
A specialized expert group delivered a report tackling several matters, including resolution protocols for globally systemically important banks, the operational robustness of financial institutions, climate risk assessments, and oversight mechanisms for cross-border payments and settlements. This partnership signifies a pivotal advancement in bolstering financial stability and nurturing the bilateral relationship between the U.S. and China, the two largest economies in the world. U.S. Treasury Secretary Janet Yellen and Chinese Vice Premier He Lifeng have agreed on routine meetings involving Treasury officials and their counterparts from the Ministry of Finance and the People’s Bank of China at the vice minister level.
This agreement emerges in the context of ongoing contentions between the two countries over various topics, including industrial strategies and investments in advanced technologies. Nonetheless, the recent dialogues reflect a mutual commitment to enhance communication and coordination, particularly in times of financial distress, to safeguard stability in both economies.
