The FinServ International Monetary Policy and Trade Subcommittee held a hearing today to address Chinese restrictions on market access for U.S. financial institutions, although a number of outstanding trade issues were also raised. While Treasury Under Secretary Lael Brainard praised China’s recent commitments during the Fourth Strategic & Economic Dialogue (S&ED) to reform a host of discriminatory rules for foreign firms and investors, Subcommittee Members were less than enthusiastic. Chairman Miller (R-CA) remarked that “the U.S. makes commitments while China comments” during negotiations, and Ranking Member McCarthy (D-NY) warned that S&ED commitments are nonbinding. The FRB’s recent decision approving a major Chinese bank acquisition (see FSM Report CHINA12) also received critical reviews, with Members arguing that China does not grant comparable access. This report analyzes today’s hearing.
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