U.S. presses China on Mastercard, Citigroup market access in bilateral Bangkok talks, official says

U.S. officials asked China to expand market access for Mastercard, Visa, and Citigroup. The issue matters because foreign financial firms still face licensing limits and domestic competitors dominate China’s payments market. Regulatory approval was also part of an agreement reached by Presidents Donald Trump and Xi Jinping.

Mastercard already processes yuan card payments through a local joint venture with NetsUnion Clearing Corp. The requested change would let it operate as an independent entity. Visa received approval to prepare a wholly owned domestic card-clearing business, but must later apply for an operating license. Citigroup is seeking a wholly owned securities license.

The Treasury delegation raised these issues in Bangkok with Chinese central-bank and finance officials. Visa has up to a year to prepare before applying for its license. Citigroup’s approval could come soon, while its China securities staff may rise to about 100. The moves are described as limited concessions that could modestly improve investor confidence.

Market access is the practical ability of a foreign company to enter a country’s financial sector and serve customers there. It depends on government approval, licensing, ownership rules, and the activities regulators allow. For U.S. firms in China, access determines whether they can operate directly or must use a local partner.

Mastercard provides a clear example. It currently handles yuan card payments through a joint venture with NetsUnion Clearing Corp. Independent operation would give Mastercard a different market-access structure. Visa’s approval shows another stage: it may prepare a domestic card-clearing business, but it still needs an operating license.

Citigroup’s application illustrates how broad access can be. It wants a wholly owned securities license for A-share brokerage, underwriting, research, and principal trading. China has opened much of finance to foreign firms since 2018, but restrictions remain. The Bangkok talks focused on turning political agreements into actual approvals and operating rights.

Citigroup is seeking a wholly owned securities license for a wide range of Chinese onshore activity. The license would allow the bank to participate directly in the A-share market rather than relying on a narrower or shared structure. That matters because ownership and licensing determine how much control a foreign bank has over its local business.

The four proposed businesses are A-share brokerage, underwriting, research, and principal trading. Brokerage would involve serving clients in buying and selling shares. Underwriting would support securities offerings. Research would produce market analysis, while principal trading would involve the bank’s own trading activity. These are distinct functions under one proposed license.

Citigroup applied in late 2021, and Reuters reported that approval could come soon. The bank has already hired several dozen employees for its China unit. One person familiar with the bank’s plans said its securities staff could grow to about 100, suggesting preparation for a substantial operation if regulators approve the application.

Independent operation would change Mastercard’s role in China’s payments market. It currently provides yuan card payments through a local joint venture with NetsUnion Clearing Corp. A separate, wholly owned entity would let Mastercard run that card-clearing business directly instead of sharing the operating structure with a domestic partner.

The key mechanism is regulatory approval. China has kept state-backed domestic players dominant in payments, so Mastercard cannot simply separate from its joint venture on its own. The approval under discussion would permit an independent entity to operate. The article does not specify changes to pricing, customer reach, or transaction volumes.

The shift would give Mastercard more direct control over its Chinese operations and align with China’s gradual financial-sector opening. It would also represent a limited concession on market access. The U.S. Treasury pressed Chinese officials on the issue in Bangkok, suggesting implementation of the Trump-Xi agreement remains an active diplomatic matter.

Visa’s October 13 approval is an initial regulatory step. It allows the company to prepare a wholly owned domestic card-clearing business, but it does not authorize the business to begin operating. China’s process separates preparation from final permission to conduct the service.

The mechanism is a two-stage pathway. Visa can use up to one year to prepare its domestic entity and operations. After that preparation period, it must apply for an operating license. The People’s Bank of China identified this timetable, making clear that approval to prepare is not the same as approval to serve the market.

This distinction leaves Visa’s final launch dependent on another regulatory decision. It also explains why U.S. officials continued discussing approvals with Chinese counterparts in Bangkok. The Visa decision signals some opening in China’s financial sector, but the company still faces a licensing stage before it can operate its card-clearing business independently.

Since 2018, China has allowed more foreign ownership in services such as securities, futures, and fund management. At the same time, it has kept limits on cross-border capital flows and allowed state-backed domestic players to remain dominant in payments. This combination expands selected foreign participation without giving up broader financial control.

The article shows how that balance works. Visa can prepare a wholly owned domestic card-clearing business, and Citigroup is seeking a wholly owned securities license. Mastercard operates through a local joint venture. These arrangements open specific channels while keeping entry subject to Chinese approvals and rules.

China’s approach therefore appears gradual and selective. The article does not state the government’s exact reasons for each restriction, so its policy motivations should not be overstated. It does show that foreign access is expanding within limits. The Bangkok discussions focused on implementing deals, while analysts called the licensing moves limited concessions that could marginally bolster confidence.

A card-clearing network is the infrastructure that processes card payments and connects the institutions involved in a transaction. It helps route payment information and settle transactions between merchants, banks, and card users. For payment companies such as Mastercard and Visa, access to this infrastructure is central to offering card services in a country.

The article illustrates the issue through China’s rules. Mastercard currently operates yuan card payments through a local joint venture with NetsUnion Clearing Corp. Visa received permission to prepare a wholly owned domestic card-clearing business. The difference is structural: one uses a local partnership, while the other is designed for direct ownership, subject to a later operating license.

Control over clearing affects whether a company can operate independently in the market. China has kept state-backed domestic players dominant in payments, so regulatory approval is especially important. The article does not describe the network’s technical systems or specific transaction flows. It does show that clearing approval is a major part of market access.