Magazine article American Banker

U.S. Financial Execs Urge China's Premier to Clarify Policies on Foreign Firms

Magazine article American Banker

U.S. Financial Execs Urge China's Premier to Clarify Policies on Foreign Firms

Article excerpt

Leading U.S. financial services executives urged China's premier at a luncheon Tuesday to clarify policies on foreign lending and investments. Zhu Rongji was peppered with questions about the Chinese government's stance on loan guarantees during the closed-door meeting in New York. The event, hosted by the American Bankers Association, drew 21 senior U.S. banking, securities, and insurance industry executives.

Several Chinese private investment corporations have gone bankrupt in recent months amid confusion over whether the government had guaranteed tens of billions of dollars in loans.

"A number of U.S. representatives expressed the desire to have clear road signals or signs with regard to (Chinese) government policy," Donald Ogilvie, executive vice president of the ABA, said at a press briefing after the luncheon.

In response, Mr. Zhu assured U.S. executives that China will work to avoid allowing similar situations to happen again, Mr. Ogilvie said. But the Chinese premier also advised U.S. lenders and investors to adopt tighter practices in the future.

"His response was that foreign businesses should also do a clear commercial analysis when lending to such institutions," Mr. Ogilvie said. Mr. Zhu has been in the United States for several days as part of a broader effort to improve the two countries' relations.

Among the executives at the luncheon and a 40-minute discussion with Mr. Zhu in the Waldorf-Astoria Hotel were Henrique de Campos Meirelles, president of BankBoston Corp. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.