U.S. Treasury Officials Press Beijing on Mastercard and Citigroup Market Access in Bangkok Talks

BANGKOK — U.S. officials pressed Beijing on market access issues for Mastercard Inc. and Citigroup Inc. during at least two bilateral meetings with Chinese counterparts in Bangkok this week, according to a U.S. Treasury official. The high-level diplomatic and economic engagements took place on the sidelines of the Group of 20 finance meetings and the annual gathering of the International Monetary Fund and the World Bank.

The Treasury delegation, led by Deputy Secretary Francis Brooke, held bilateral discussions with officials from the People’s Bank of China and the Chinese Ministry of Finance. The official, who spoke on the condition of anonymity to discuss the closed-door diplomatic and regulatory meetings, noted that the conversations focused heavily on reducing barriers and securing broader commercial operations for American financial institutions in the world’s second-largest economy.

The scope of the talks included market access and regulatory clearances for major U.S. financial services companies, including Mastercard, Visa Inc., and Citigroup, the official said. Furthermore, the official added that advancing these regulatory approvals was a core part of the agreements reached during the high-stakes summit between U.S. President Donald Trump and Chinese President Xi Jinping during the latter’s state visit to Washington last month. The sideline meetings in Bangkok served as a direct continuation of those discussions, specifically aiming to hammer out the practical logistics of implementing these cross-border economic deals.

Despite the high-profile nature of the negotiations, responses from regulatory bodies and corporate entities remained measured. The People’s Bank of China, China’s National Financial Regulatory Administration, the China Securities Regulatory Commission, the Chinese embassies in Singapore and Thailand, the U.S. Treasury Department press office, and Visa did not immediately respond to CNBC’s requests for comment regarding the Bangkok meetings. Meanwhile, representatives for Citigroup and Mastercard both declined to comment on the ongoing diplomatic developments.

The diplomatic push in Thailand follows closely on the heels of a notable regulatory breakthrough in mid-October. On Oct. 13, China granted formal approval for Visa Inc. to begin preparations for establishing a wholly owned domestic card-clearing business within the country. Under the terms of the PBOC decision, Visa has been given up to a year to complete its operational and logistical preparations before it must officially apply for a permanent operating license, according to announcements from the central bank.

China has gradually opened substantial portions of its vast financial sector to foreign firms since initiating broad structural reforms in 2018. Over the intervening years, Beijing has slowly lifted foreign ownership caps across a variety of financial services, including securities brokerages, futures trading operations, and fund management firms. However, despite these progressive openings, the regulatory landscape remains tightly controlled. China continues to maintain strict limitations on cross-border capital flows, and state-backed domestic players have successfully maintained a dominant position within the domestic payments ecosystem.

Mastercard currently operates yuan card payments within mainland China through a local joint venture partnership with NetsUnion Clearing Corp., a framework that officially began operations in 2024. However, the pending regulatory approvals and ongoing bilateral discussions aim to allow the financial giant to operate as an entirely independent entity, according to the official familiar with the matter.

Simultaneously, Citigroup has been aggressively positioning itself to capture a larger share of the onshore financial market. The banking titan has already hired several dozen employees for its expanding China unit and is actively seeking a wholly owned securities license. Securing this license would enable Citigroup to conduct A-share brokerage, underwriting, research, and principal trading businesses directly within the onshore market, according to two people familiar with the industry who spoke on the condition of anonymity due to the private nature of the discussions.

One of the sources close to Citigroup revealed that the global banking institution has ambitious plans to scale up its China securities workforce to approximately 100 employees as it anticipates the final green light from regulators. Citigroup originally submitted its formal application for the securities license in late 2021. Reuters reported last month that the long-awaited regulatory approval could finally be issued in the near future.

The diplomatic momentum is expected to continue into the late autumn. Presidents Donald Trump and Xi Jinping are widely anticipated to meet in person for the third time this year in Shenzhen, China, on the sidelines of the Asia-Pacific Economic Cooperation summit scheduled for November.

Observational analysts suggest that the steady stream of regulatory permissions and ongoing bilateral dialogue points to a stabilizing geopolitical and economic relationship between Washington and Beijing. "The move suggests the US-China trade environment remains benign, and Beijing is keen to keep up the momentum," said Dan Wang, China director at Eurasia Group.

Wang characterized the ongoing licensing of U.S. financial firms as a "limited concession" on market access by Beijing. Nevertheless, she noted that the steady progression signals China’s continued commitment to structural economic opening, adding that "this should marginally bolster investor confidence in Chinese assets."