BEIJING, China, Aug 20 — The world’s two largest economies are strengthening financial cooperation through the China-United States Financial Working Group, in order to jointly address the new challenges brought by intensified fluctuations in the global financial market, experts said on Monday.
They also said the two countries have demonstrated their strong commitment to mitigating potential risks and safeguarding global financial stability.
Their remarks came after the China-US Financial Working Group held its fifth meeting on Thursday and Friday in Shanghai. The meeting was co-chaired by Xuan Changneng, deputy governor of the People’s Bank of China, and Brent Neiman, assistant secretary of the US Department of the Treasury.
The PBOC, China’s central bank, said on Monday that the two sides signed documents on strengthening China-US cooperation to boost financial stability under the framework of the working group, which was established in September to hold regular and ad hoc meetings to strengthen communication on financial topics.
The PBOC and the US Treasury Department also exchanged lists of financial stability liaison officers, aimed at ensuring timely, smooth communication between financial regulatory authorities of the two countries to mitigate uncertainties.
China and US financial officials also had a “professional, pragmatic, candid and constructive” discussion on financial policies, the PBOC said. The topics included China’s agenda on further comprehensively deepening reform, which was decided upon during the third plenary session of the 20th Central Committee of the Communist Party of China, as well as economic and financial situations, monetary policy, financial stability and regulation, securities and capital markets, cross-border payment and data, international financial governance, financial technology, sustainable finance, anti-money laundering efforts and countering the financing of terrorism.
Liu Chunsheng, an associate professor at Central University of Finance and Economics’ School of International Trade and Economics, said that such high-level dialogue allows the two sides to eliminate misunderstandings and differences and enhance mutual trust, thereby laying a solid foundation for sustainable economic growth.
Specifically, the in-depth exchanges on key topics such as monetary policy will help stabilize market expectations and reduce market volatility, Liu said, adding that the international community’s confidence in the two nations’ economic and financial systems will be significantly enhanced.
Lin Shen, an associate research fellow at the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, said the meeting demonstrated the two countries’ strong commitment to safeguarding financial stability, and also helped them develop effective response mechanisms for potential financial risks.
“The meeting also serves as a great platform for China and the US to deepen cooperation and share best practices, especially when it comes to sustainable finance and green finance,” said Lin.
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