US-China Financial Working Group Holds 7th Meeting

The United States and the People’s Republic of China held the seventh meeting of the Financial Working Group (FWG) in Nanjing on December 15-16. The meeting was co-led by Brent Neiman, U.S. Assistant Secretary for International Finance at U.S. Treasury, and Xuan Changneng, Deputy Governor of the People’s Bank of China.

The meeting started with the co-leads receiving readouts on recent technical exercises, including a discussion on potential discrepancies in international macroeconomic data. The FWG moved on to discussions of topics including China’s recent stimulus measures, cross-border data regulations, issues related to the International Monetary Fund, cross-border payments, and swap arrangement practices. The Joint Treasury-People’s Bank of China Cooperation and Exchange on Anti-Money Laundering (AML) also met in-person for the fourth time and discussed topics related to illicit finance. Treasury raised several issues of concern.

Building on a recent FWG technical exercise, Treasury’s Federal Insurance Office and China’s National Financial Regulatory Agency signed a memorandum of understanding (MOU) related to information-sharing and other areas of mutual interest in the insurance sector. The new MOU updates existing arrangements to reflect changes in China’s regulatory structure.

The FWG is a channel to help responsibly manage the U.S.-China bilateral relationship and strengthen efforts to preserve domestic and global financial stability.

Public Release.