As US-China deal nears, Beijing relaxes rules for foreign banks and insurers, in concession to Washington

China announced a dozen new measures on Wednesday to further open up its US$44 trillion financial sector to foreign banks and insurers

Analysts are viewing the move as a clear concession to US negotiators and a sign that a deal to end the trade war is imminent

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Chinese Vice Premier Liu He shows the way to US Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer as they proceed to their meeting at the Diaoyutai State Guesthouse in Beijing on May 1, 2019. Photo: AFP

Published: 9:00pm, 1 May 2019Updated: 3:50am, 2 May 2019

China announced a dozen new measures on Wednesday to further open up its US$44 trillion financial sector to foreign banks and insurers in a clear move to comply with any deal with the United States to end the trade war.

The announcement came while a US negotiating team headed by US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin were holding the latest round of talks in Beijing with Chinese counterparts led by Vice-Premier Liu He.

While no details of Wednesday’s negotiations were forthcoming, Mnuchin told reporters upon leaving the meeting that they were “productive”. Hopes are high that a trade deal can be reached soon.

“We hope within the next two rounds in China and in [Washington] DC to be at the point where we can either recommend to the president we have a deal or make a recommendation that we do not,” Mnuchin said in a taped interview broadcast on Fox News on Monday morning.

A pedestrian walks past the headquarters of China Banking and Insurance Regulatory Commission (CBIRC) in Beijing. Photo: DFIC

The Chinese trade delegation is due to travel to Washington next week for another round of talks, which are expected to begin on Tuesday.