US media say China has a strong partner in the United States

category:Finance
 US media say China has a strong partner in the United States


The motive behind this is obviously interest. The provisions of the first phase of the Sino US economic and trade agreement signed at the beginning of this year included the contents of Chinas further opening up and the introduction of more foreign financial institutions into the Chinese market. In August, BlackRock, the worlds largest asset management institution, became the first wholly-owned public offering fund approved by the CSRC.

The article describes that for many large asset management companies such as BlackRock, China is an existence that cannot be ignored. In the United States, they are facing a saturated market and shrinking profits due to fee disputes. As the worlds fastest growing financial services market, China has maintained strict supervision while allowing foreign capital to enter.

Wall Street, eager to enter this market, is willing to make overtures, such as supporting China on some controversial issues.

The Sino US trade talks provide an opportunity for Wall Street to perform. Including Stephen Schwarzman, founder of Blackstone, Henry Paulson, former US Treasury Secretary, and John Thornton, a former Goldman Sachs executive, all played a role in communication between the Chinese and American governments.

Larry Fink, President of BlackRock, has visited China frequently in the past two years to express his willingness to enter the Chinese market. He once described China and the United States as intertwined destiny and hoped BlackRock to become a Chinese company.

According to people familiar with the matter, BlackRock has played an important role in helping MSCI, the worlds No.1 index maker, to be included in Chinas A-share market for the first time in 2018, according to people familiar with the matter. MSCI continues to expand its A-share market in the future, and experts predict that tens of billions of dollars will flow into Chinas stock market.

In July this year, more than 40 representatives of U.S. trade groups such as agriculture, medicine and aviation wrote to Washington, asking China to increase procurement. But Wall Street banks and asset managers did not sign on behalf of them. People in the financial services sector are basically satisfied with the [economic and Trade Agreement] progress, said a person familiar with the matter

The article admits that even after the first phase of Sino US economic and trade agreement has been settled, the Chinese government still maintains effective supervision over the financial market and has the decision-making power of foreign investment access.

However, the next Biden administration still has a question mark about how much attention the next Biden administration attaches to the Sino US economic and trade negotiations and the people on Wall Street.

Jack Sullivan, who has been nominated by Biden as national security adviser, wrote an article earlier this year that he did not want to overemphasize financial market access in Sino US economic and trade negotiations. Why should the US focus on helping Goldman Sachs open up Chinas financial markets? After Biden came to power, he must first clean up the economic mess in the United States, which has been hit hard by the epidemic. The Democratic Party is influenced by progressives and has prejudice against wall street people. Even Larry Summers, the former Treasury Secretary of the Clinton administration, who once encouraged Chinas financial openness, recently wrote an article expressing similar views. He believes that the expansion of overseas markets by U.S. financial companies has little impact on the increase of domestic employment in the United States, and suggested Biden do not use your scarce political capital or American political capital to advance the business agenda of these companies. Biden told the New York Times on the 2nd that he would not immediately take any action on the first phase of Sino US economic and trade agreement, and would consult with key allies to comprehensively review the US China policy. Source: observer.com editor in charge: Yang Bin_ NF4368

Jack Sullivan, who has been nominated by Biden as national security adviser, wrote an article earlier this year that he did not want to overemphasize financial market access in Sino US economic and trade negotiations. Why should the US focus on helping Goldman Sachs open up Chinas financial markets?

He believes that the expansion of overseas markets by U.S. financial companies has little impact on the increase of domestic employment in the United States, and suggested Biden do not use your scarce political capital or American political capital to advance the business agenda of these companies.

Biden told the New York Times on the 2nd that he would not immediately take any action on the first phase of Sino US economic and trade agreement, and would consult with key allies to comprehensively review the US China policy.