The United States and the People’s Republic of China convened the fifth meeting of the Financial Working Group (FWG) in Shanghai on August 15-16, 2024. Senior officials from the U.S. Department of the Treasury and the People’s Bank of China led the two-day discussions, which included participants from various agencies.
The sessions began with a review of outcomes from bilateral technical exchanges held in June and July. Topics covered included central bank climate scenario testing, financial sector operational resilience, cross-border supply of financial services, and hypothetical Global Systemically Important Banks (G-SIBs) resolution. The Joint Treasury-People’s Bank of China Cooperation and Exchange on Anti-Money Laundering (AML) met in person for only the second time since its launch by U.S. Secretary of the Treasury Janet L. Yellen in April. Discussions during this session focused on beneficial ownership, potential revisions to China’s AML law, among other topics.
Additional meeting sessions addressed macroeconomic and financial stability, international financial institutions, cross-border payments and data, sustainable finance, and capital markets issues. U.S. officials also raised areas of disagreement during these conversations.
A roundtable discussion involving private Chinese and U.S. firms took place to exchange views on climate financing topics such as transition planning and carbon markets.
The meetings concluded with an exchange of letters between Treasury and the PBOC supporting coordination during times of financial stress to strengthen information sharing and reduce uncertainty regarding crisis management frameworks. Key points of contact were exchanged to facilitate quick coordination during instances of financial stress or operational resilience issues.
The FWG will continue to meet regularly and conduct additional follow-up technical exercises.
Formed by Secretary Yellen and Vice Premier He Lifeng last September, the FWG is co-led by Brent Neiman, Assistant Secretary for International Finance at the U.S. Treasury, and Xuan Changneng, Deputy Governor of the People’s Bank of China. The group reports directly to Secretary Yellen and Vice Premier He Lifeng and aims to deepen communications between the two countries based on President Biden’s guidance following recent summits in Bali and Woodside.
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