Chinese Vice Premier He Lifeng met with several U.S. financial executives last month as Beijing seeks to build relationships ahead of President-elect Donald Trump taking office. Plan to impose tariffs on China.
He Lifeng is one of China’s four vice-premiers and director of the Economic and Financial Commission of the ruling Communist Party of China.
he met BlackRock Chairman and Chief Executive Officer Larry Fink in Beijing on December 5and Goldman Sachs President and Chief Operating Officer John E. Waldron, December 4According to state media reports. followed by Citigroup CEO Jane Fraser November 21state media said.
“The Chinese are looking for every possible avenue to reach those who are in power in Washington, which is the Trump team,” said Peter Alexander, founder of Z-Ben Advisors, a Shanghai-based consulting firm. “The counter channel is China The way things work when it comes to building communication lines is even more preferable.”
Goldman Sachs said it was aware of the reports. Two other financial firms did not respond to CNBC’s requests for comment.
Trump has appointed at least 10 cabinet members reported billionaireincluding two people with extensive financial backgrounds: hedge fund managers Scott Bessent as Finance Minister and Cantor Fitzgerald CEO Howard Lutnick appointed as Commerce Secretary.
“I do think that Wall Street people coming into Commerce and Treasury will play a moderating role in terms of trade protectionism,” said Clark Packard, a fellow at the Cato Institute. “It’s all relative because I do think the trade side will There will be protectionism that will help mitigate some of those effects.”
“Especially at the Treasury Department, they are very worried about the market reaction,” Packard said. “The one thing that could really make Trump back away from really radical (policies) is market reaction.”
U.S. stocks on track for a relatively rare second straight year of gains Increased by more than 20%. After plunging earlier this year, Chinese stocks rebounded after Beijing signaled a shift toward stimulus in late September. Chinese authorities confirmed on Monday Supportive positions at high-level meetings.
“Keep your options open”
Liu Zongyuan, the Maurice R. Greenberg senior fellow for China studies at the Council on Foreign Relations, said Beijing has kept its options open by hosting Wall Street executives and imposing export controls on critical minerals. “They are preparing for the worst-case scenario.”
But she warned that financial institutions were unlikely to do much to ease tariffs and tensions with the United States. “Business deals and Wall Street executives, no matter what, they are not going to pass up any market opportunity as long as it fits their agenda,” she warned. image.
Chinese financial media concluded that He Lifeng’s meeting with top U.S. officials sent a signal that Beijing is willing to open up its financial industry and attract more people. long-term foreign institutional investment. Foreign capital often flows in Cast by Chinese state media As a symbol of support for the domestic market.
Wen Jiabao also met with the President and CEO of Invesco Group Andrew Schlossberg was in Beijing on November 11. 12Chairman of HSBC Group Mark Tucker November 14According to state media reports. HSBC said it had nothing to add to the report. Invesco did not respond to a request for comment.
Winston Ma, an adjunct professor at New York University School of Law, said that the Chinese and American capital markets are “arguably the most dynamic and interconnected aspect of the bilateral relationship over the past two decades.”
“When cross-border financial relationships are constructive and cooperative, they may result in MAP, Mutual Assurance (Prosperity);otherwise it will be MAD – Mutually Assured Destruction,” Ma said, referring to the Cold War-era principle of deterrence.
