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By Xia Bin

There has been the latest progress in China-US financial work.

The People's Bank of China announced on the 19th that the China-US Financial Working Group held its fifth meeting in Shanghai from August 15 to 16, 2024.

The meeting was co-chaired by Xuan Changneng, Deputy Governor of the Central Bank of China, and Naiman, Assistant Secretary of the U.S. Treasury Department. The State Financial Supervision and Administration Bureau, China Securities Regulatory Commission, Federal Reserve, and U.S. Securities and Exchange Commission attended the meeting.

Judging from the content released to the outside world during the meeting, it continued to send the signal that both sides hoped to maintain communication and safeguard stability, and also demonstrated tangible work results.

The meeting time is special

Among the topics of communication between the two sides, "the overall deployment of the Third Plenary Session of the 20th Central Committee of the Communist Party of China on further comprehensively deepening reform" ranked first.

From the point of view of timing, this meeting is the first China-US Financial Working Group meeting since the closing of the Third Plenary Session of the 20th CPC Central Committee, and it is also the fifth meeting of the working group since its establishment in September last year.

In addition, the two sides also communicated on the economic and financial situation and monetary policy of China and the United States, financial stability and supervision, securities and capital markets, cross-border payments and data, international financial governance, financial technology, sustainable finance, anti-money laundering and anti-terrorist financing, and other financial policy issues of concern to both sides.

In the previous four meetings of the China-US Financial Working Group, the two sides have conducted professional, pragmatic, candid and constructive communication on issues such as the two countries' monetary policy and financial stability, financial regulatory cooperation, anti-money laundering and counter-terrorist financing, and financial infrastructure.

A list and a roundtable

The meeting also achieved results. During the meeting, the People's Bank of China and the U.S. Treasury signed an exchange of notes on strengthening China-U.S. financial stability cooperation under the framework of the China-U.S. Financial Working Group and exchanged lists of financial stability contacts, aiming to enable the financial management departments of both sides to maintain timely and smooth communication channels when financial stress events and financial institutions' operational risks occur, thereby reducing uncertainty.

The two sides also held the first financial institution roundtable under the framework of the China-US Financial Working Group. The participating Chinese and US financial institutions focused on sustainable finance, shared their experiences and practices, and exchanged views on potential cooperation opportunities.

《The New York Times” said the meeting aimed to strengthen communication and “maintain the stability of economic relations between the two sides.”

The topics discussed show the US's intention to engage in dialogue and coordination with China on financial stability and in addressing potential economic issues, and also highlight the importance of ensuring global economic and financial stability under the current complex situation.

The dialogue and coordination between the two major countries, China and the United States, on financial issues will undoubtedly inject stabilizers into the global economic and financial markets.

It should be noted that for the current global financial markets and macroeconomics, the United States itself is the biggest uncertainty. The Federal Reserve’s “massive money printing” has triggered inflation in many countries, and the interest rate hike process has continued to disturb the global stock market, bond market and foreign exchange market.

The recent breakthrough of the U.S. national debt to $35 trillion has also greatly increased global concerns about financial stability. Earlier this year, the International Monetary Fund (IMF) also made a rare criticism of the United States' unsustainable fiscal policies for undermining global financial stability.

Source: National Express

Editor: Gao Yantang

Editor: Wei Xi