Joint Statement

Engage China Coalition Supports Strategic Economic Dialogue

WASHINGTON, DC - Engage China, a coalition of nine financial services trade associations united in support of the goals of the U.S.-China Strategic Economic Dialogue (SED), today released the following statement on the U.S.-China SED, which will hold its third meeting in Beijing, Dec 12th and 13th.

“The Engage China coalition strongly supports the goals of the U.S.-China Strategic Economic Dialogue (SED) and believes continued engagement with China is the best way to remove the barriers that U.S. securities firms, banks, insurance companies, futures brokers, and asset managers face in China. The SED provides a vital forum for leaders to address our economic relationship and the mutual benefits achieved through the greater opening of China's financial markets to global financial institutions.

“These talks have helped enhance the economic relationship between the U.S. and China. Throughout this process, China has made incremental progress in opening its financial sector to participation by global financial services firms, but much more progress is needed.

“Expanded access to the Chinese market for U.S. financial services firms will yield great benefits for the U.S. economy and the Chinese economy as well. The world-class expertise that global financial services institutions bring will help to expand the availability of capital and provide Chinese consumers greater access to a range of financial-services products not currently available.

“China’s underdeveloped financial sector is a major obstacle to China’s achievement of its own economic goals of diversifying its economy to include a robust services sector and a more active consumer. Financial products and services – such as mortgages, credit cards, personal loans, insurance, pensions and investment products – that would help China’s businesses and consumers save and invest, prepare for unforeseen events, finance large purchases such as a house or automobile, and prepare for retirement are not readily available. The lack of such products and services leads to excessive levels of savings that limit the ability of China’s people to fully benefit from China's economic growth, and to consume U.S. exports at a higher rate.

“We recognize the complexity of this process, but remain hopeful that meaningful progress will be made in the area of financial services. Indeed, for the SED to continue its already important role in deepening political and economic mutual understanding between the U.S. and China, we believe it is critical for progress to be made. We commend Secretary Paulson and Vice Premier Wu Yi for their support of the SED and believe engagement is key to achieving the economic goals of both the U.S. and China.”

The Engage China coalition is made up of the American Bankers Association, the American Council of Life Insurers, the American Insurance Association, the Council of Insurance Agents & Brokers, the Bankers' Association for Finance & Trade, the Financial Services Forum, the Financial Services Roundtable, the Futures Industry Association, the Investment Company Institute, and the Securities Industry and Financial Markets Association.

Find out more at www.EngageChina.com.