Chinese Vice Premier He Leveng met with several US financial executives last month, as Beijing seeks to build relationships ahead of tariffs that President-elect Donald Trump intends to impose on China.
He is one of China's four vice-premiers and heads the Economic and Financial Commission of the ruling Communist Party of China.
met with Black Rock Chairman and CEO Larry Fink in Beijing on December 5 Goldman Sachs President and Chief Operating Officer John E. Waldron on Dec. 4, according to state media. This came after a meeting with Citigroup Chief executive Jane Fraser on November 21, state media said.
“The Chinese are looking for every possible way to reach those who are now coming to power in Washington,” said Peter Alexander, founder of Shanghai-based consultancy Z-Ben Advisors. “Team Trump.” “Back channels are the way China operates, and even prefers, when building communications lines.”
Goldman Sachs said it was aware of the reports. The other two financial companies did not respond to CNBC's request for comment.
Trump has filled his Cabinet picks with at least 10 billionaires, including two with heavy financial backgrounds: hedge fund manager Scott Besent for Treasury secretary and Cantor Fitzgerald CEO Howard Lutnick for Commerce secretary.
“I think Wall Street people who come into trading and treasury will play a moderating role on the trade protectionist side,” said Clark Packard, a research fellow at the Cato Institute. “It's all relative because I think there will be something protectionist on the trade side. And those will be the votes that mitigate some of that.”
“They are very concerned at the Treasury Department about the market reaction,” Packard said. “The only thing that might really scare Trump away from a really aggressive[policy]is the market reaction.”
US stocks are on track for gains of more than 20% for the second year in a row, which is relatively rare. After falling early this year, Chinese stocks rebounded after Beijing signaled a shift toward stimulus in late September. On Monday, Chinese authorities confirmed this supportive stance at a high-level meeting.
'Keep her options open'
Zhongyuan Zoe Liu, a fellow of Maurice R. Greenberg, who studies China at the Council on Foreign Relations, said that through actions such as hosting Wall Street executives and imposing export controls on critical minerals, Beijing is keeping its options open. “They are preparing for the worst case scenario.”
But she warned that financial institutions were unlikely to be able to do much to ease tariffs and tensions with the United States. “Trade and Wall Street executives, one way or another, won't pass up opportunities in any market as long as it fits their profile.” “Liu said.
Chinese financial media summarized He Lifeng's meetings with US executives as sending a signal about Beijing's desire to open up the financial sector and attract long-term foreign institutional investment. Chinese state media often portray foreign capital inflows as a symbol of support for the domestic market.
The Chinese vice premier also met with Invesco Chairman and CEO Andrew Schlossberg in Beijing on November 12, and HSBC Group Chairman Mark Tucker on November 14, according to state media. HSBC said it had nothing to add to the report. Invesco did not respond to a request for comment.
Winston Ma, an assistant professor at New York University School of Law, said US-China capital markets have been “the most dynamic and interconnected aspect” of the bilateral relationship in the past two decades.
“When the cross-border financing relationship is constructive and cooperative, it can lead to MAP, Mutually Assured Prosperity; otherwise it will be MAD, Mutually Assured Destruction,” Ma said, referring to the principle of deterrence during the Cold War.
