Rethinking U.S. Policy on Engagement with Chinese Financial Institutions

This article proposes practical steps for the US to manage both inbound investment from Chinese FIs and outbound investments by US entities into China's financial sectors. Key recommendations include broadening the 'national treatment' regulatory standard to evaluate state ownership and CCP influence in Chinese banks, and requiring appropriate disclosure for investments in sectors like asset management. Furthermore, the analysis addresses risks related to Variable Interest Entities (VIEs) and seeks resolution on the potential mass delisting of Chinese securities from US exchanges.