The United States and China have taken a significant step toward enhancing their economic collaboration by signing an agreement aimed at bolstering financial stability in both nations. This agreement was formalized during a two-day meeting of the U.S.-China Financial Working Group, held in Shanghai on Thursday and Friday.
Co-led by Brent Neiman, the U.S. Deputy Under Secretary for International Finance, and Xuan Changneng, Deputy Governor of the People’s Bank of China (PBC), the working group engaged in comprehensive discussions on various aspects of financial cooperation. The two countries exchanged lists of key contacts to facilitate communication in the event of financial stress or other risk scenarios in the future.
The meeting included representatives from major regulatory bodies such as the U.S. Securities and Exchange Commission, the Federal Reserve, China Securities Regulatory Commission, and the National Financial Regulatory Administration. Key topics covered during the discussions included cross-border payments, capital markets, and monetary policies, with particular attention given to the recent Third Plenum meeting in China.
A CNBC translation of the Chinese statement described the talks as “professional, pragmatic, candid, and constructive.” The meeting also featured in-depth reports from technical experts on critical issues such as climate-risk stress testing and the resilience of global financial institutions.
On Thursday, the People’s Bank of China, via state media, reported a decrease in China’s financial risks, including those associated with local government debt. Under the new agreement, Chinese and U.S. financial institutions participated in their first round-table discussion, exploring opportunities for cooperation and the role of finance in fostering sustained economic growth.
This agreement marks a pivotal moment in U.S.-China relations, as both nations seek to navigate complex global economic challenges through closer collaboration and mutual understanding.
