Visa’s recent regulatory clearance to establish a domestic bank card clearing business in China is a “direct outcome” of the presidential summit held last month, according to the Chinese embassy in Washington.
The administrative approval granted by the People’s Bank of China gives the American payment giant one year to complete advance arrangements before applying to begin domestic operations. Qiu Wenxing, Deputy Chief of Mission at the Chinese embassy, confirmed the diplomatic origins of the economic decision during a briefing on Thursday.
The financial services agreement formed part of a 10-point consensus reached during Chinese President Xi Jinping’s state visit to the United States last month. Other measures included the launch of the Board of Trade and a two-month extension of the Busan agreement following a September 23 meeting in Washington between US Treasury Secretary Scott Bessent and Chinese Vice-He Lifeng.
Visa CEO Ryan McInerney attended last month’s White House state dinner honoring the Chinese leader and joined the delegation of chief executives accompanying US President Donald Trump on a state visit to Beijing in May.
“We greatly appreciate the important role of the leaders of the United States and China in pursuing a constructive and strategically stable relationship between the world’s largest economies,” McInerney said in a statement on Tuesday.
The central bank described the clearance as a major step in opening up the country’s financial sector. Visa established a foreign-invested company, Visa Information Technology (Beijing), to handle its operations.
Unlike its major US competitors, Visa plans to operate through a wholly foreign-owned enterprise rather than a local joint venture. American Express launched domestic clearing operations via a Chinese joint venture in 2020, while Mastercard’s joint venture secured approval in 2023.
Regulatory Timeline and Market Entry
Visa’s path to domestic market entry spans nearly a decade. The company initially filed its application with the People’s Bank of China in July 2017.
Central bank officials disclosed in 2019 that Visa withdrew that initial application in January 2018. The company resubmitted revised materials three months later and spent subsequent years awaiting a final decision.
| Institution | Entry Method | Approval Year |
|---|---|---|
| American Express | Chinese Joint Venture | 2020 |
| Mastercard | Chinese Joint Venture | 2023 |
| Visa | Wholly Foreign-Owned Enterprise | 2026 |
China noted on Thursday that it welcomes financial institutions from all countries to expand operations within its borders. The Chinese embassy stated that it hopes the United States will similarly provide a fair, transparent, and stable environment for Chinese financial institutions.
“For more than 40 years, Visa has been an active contributor to China’s dynamic payments landscape,” McInerney said. “We look forward to taking the necessary steps in the process, pursuant to the PBOC’s regulations, to begin operating domestically in China.”
