Industry Group Strongly Advocates Continued Reform and Modernization of China’s Underdeveloped Financial Sector

WASHINGTON, D.C. — Engage China, a coalition of ten financial services trade associations, released the following statement on the U.S-China Joint Commission on Commerce and Trade:

“Members of the Engage China coalition commend U.S. Trade Representative Susan C. Schwab and U.S. Secretary of Commerce Carlos M. Gutierrez for hosting the 19th session of the U.S.-China Joint Commission on Commerce and Trade (JCCT). We also are pleased that Vice Premier Wang Qishan will lead the Chinese delegation for these talks. The JCCT is an important dialogue for addressing bilateral trade issues, with the aim of expanding trade opportunities between the U.S. and China.

“Engage China urges U.S. policymakers to make accelerated reform and modernization of China’s financial sector a continued Administration priority as talks begin today in California. The Coalition believes that continued engagement with China is the best way to remove the barriers that global securities firms, banks, insurance companies, futures commission merchants, brokers and asset managers face in China.

“China’s economy is the world’s third largest and fastest growing – and yet it is supported by an underdeveloped financial system. To achieve its own economic goals of maintaining high rates of growth and job creation, building a more services-based, consumer-driven economy, reducing poverty, and ensuring a more equitable distribution of opportunity and prosperity, China needs a world-class financial sector.

“The fastest way for China to acquire a modern financial system is to open its financial sector to greater participation by foreign financial services firms. By providing world-class expertise and know-how, along with the financial products and services that China’s citizens and businesses need to save, invest, insure against risk, and consume at higher levels, foreign financial institutions can help China develop the financial sector it needs to support a more diverse, mature, and stable Chinese economy.

“Engage China applauds U.S. and Chinese policymakers for their continued work to strengthen the vital U.S.-China economic relationship.

“Today’s JCCT is one of many tools to enhance the management of the growing bilateral relationship between the U.S. and China. In September of 2006, the U.S. and Chinese governments established the Strategic Economic Dialogue (SED), an overarching framework for bilateral economic dialogues already underway as well as future economic relations. The SED creates an unprecedented channel of communication between Cabinet-level policymakers and provides an essential forum for the discussion of both short-term and long-term strategic issues, as well as coordination of ongoing bilateral policy discussions.

The Engage China coalition is comprised of American Bankers Association, American Council of Life Insurers, the American Insurance Association, Council of Insurance Agents and Brokers, Bankers’ Association for Finance and Trade, the Financial Services Forum, the Financial Services Roundtable, the Futures Industry Association, Investment Company Institute, and Securities Industry and Financial Markets Association.

Find out more at www.EngageChina.com