Chinese Vice Premier He Lifeng has met with several US finance officials in the past month as Beijing seeks to build relations ahead of President Donald Trump's presidency. planned targets on China.
He Lifeng is one of China's four vice-representatives, and heads the economic and financial committee of the Chinese Communist Party.
He met him Black Rock President and CEO Larry Fink in Beijing on December 5thand Goldman Sachs President and COO John E. Waldron on December 4thaccording to state media. That came after a meeting with Citigroup CEO Jane Fraser on 21 Novemberstate media said.
“The Chinese are looking for every way possible to get to those who are now ascending to power in Washington. Team Trump,” said Peter Alexander, founder of Shanghai-based consulting firm Z-Ben Advisors. “A back channel is how China works, even prefers it, when they build lines of communication.”
Goldman Sachs said it was aware of the reports. The other two financial firms did not respond to CNBC's request for comment.
Trump has filled his Cabinet picks with at least 10 Reported billionaireincluding two with a heavy financial background: a hedge fund manager Scott Bessent for Secretary of the Treasury and CEO of Cantor Fitzgerald Howard Lutnick for Commerce Secretary.
“I think Wall Street people coming into trade and finance will have a moderate role on the trade protectionist side,” said Clark Packard, a researcher at the Cato Institute. everything is relative because I think there will be something defensive on the trade side. Those are the voices that will work to reduce some of that.”
“Especially at the Treasury Department they are very concerned about the market response,” Packard said. “The only thing that could scare Trump away from a very aggressive policy (policy) is the market reaction. “
U.S. stocks are on track for a second straight year of underperformance more than 20% gains.. After falling early this year, Chinese stocks rebounded after Beijing moved toward stimulus in late September. Chinese authorities on Monday confirmed that supportive stance in a high-level meeting.
'Keeping her options open'
With actions such as hosting Wall Street executives and imposing export controls on vital minerals, Beijing is keeping its options open, said Zongyuan Zoe Liu, a senior fellow at Maurice R. Greenberg. for China studies at the Council on Foreign Relations. “They are preparing for the worst-case scenario.”
But she warned that financial institutions are unlikely to be able to do much to ease tariffs and tensions with the US. as long as it fits their image. “, said Liu.
Chinese financial media summarized He Lifeng's meetings with US officials as signaling Beijing's willingness to open up and attract the financial sector. long-term investment, foreign institution. Foreign capital inflows are frequent cast by Chinese state media as a sign of support for the domestic market.
The Chinese vice president also met with the President and CEO of Invesco Andrew Schlossberg in Beijing on November. 12and Chairman of the HSBC Group Mark Tucker on November 14thaccording to state media. HSBC said it had nothing to add to the report. Invesco did not respond to a request for comment.
US-China capital markets appear to be “the most dynamic and interconnected aspect” of the bilateral relationship in the past two decades, said Winston Ma, an associate professor at the Law School N.Y.U.
“When the cross-border financial relationship is constructive and cooperative, that could continue MAP, ie mutually assured (success); otherwise it will be MAD, mutual assured destruction,” said Ma, referring to the Cold War principle of deterrence.
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