FOR IMMEDIATE RELEASE:              CONTACT: Jen Scungio, 202-457-8759

May 9, 2011                                         This e-mail address is being protected from spambots. You need JavaScript enabled to view it

WASHINGTON, D.C. – Financial Services Forum President and CEO Rob Nichols released the following statement in advance of the third U.S.-China Strategic and Economic Dialogue (S&ED) that will be held in Washington, DC May 9th-10th:

“The U.S.-China economic relationship is among the  most important bilateral relationships in the world.  As a channel of communication between Cabinet-level U.S. and Chinese policymakers, the Strategic & Economic Dialogue (S&ED) is an important framework for addressing long-term strategic issues and for managing the expanding bilateral relationship to the mutual benefit of the people of both nations. 

The world’s second largest and fastest growing economy should be supported by a more developed financial system.  A more modern and effective financial system is essential if China is to achieve its objective of shifting from a manufacturing-for-export economic model to the more sustainable growth path of a more services-based and consumer-driven economy – an objective very much in the interest of the United States.  Activating China's 1.3 billion consumers is the surest pathway toward correcting, and even reversing, the current trade imbalance with China.  Those increased exports to China translate into jobs for Americans.

Foreign financial institutions bring world-class expertise and best practices with regard to products and services, credit analysis, risk management, internal controls, and corporate governance.  By helping to provide 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 an economy that is less dependent on exports, and more services-based and consumption-driven.  By helping to stimulate consumer and business demand within China, greater market access for U.S. financial services firms will also play an important role in achieving President Obama’s stated goal of doubling U.S. exports within the next five years, promoting economic growth and creating jobs here at home. 

We look forward to hearing of the outcomes of the S&ED talks and thank Treasury Secretary Timothy Geithner, Secretary of State Hillary Rodham Clinton, Vice Premier Wang Qishan, and State Councilor Dai Bingguo for their continued leadership during this important dialogue."

The Financial Services Forum is an economic and financial policy organization comprised of 20 chief executive officers of the largest and most diversified financial institutions with business operations in the United States. The Forum’s purpose is to promote policies that enhance savings and investment in the United States, and that ensure an open, competitive, and sound financial services marketplace.

###