{"text":[[{"start":9.16,"text":"Global payments giant Visa has gained long-awaited approval to set up card operations in China, in a breakthrough that comes ahead of an expected meeting next month between Donald Trump and Xi Jinping."}],[{"start":20.92,"text":"China’s central bank on Tuesday said it would allow Visa to begin formal preparations to establish a card-clearing business in the country."}],[{"start":28.64,"text":"Ryan McInerney, chief executive of Visa, called the approval “a significant step forward in Visa’s longstanding commitment to China”."}],[{"start":37.04,"text":"The San Francisco-based company has sought to access the Chinese market since at least 2015, when it established a local unit, according to business registration records."}],[{"start":47.04,"text":"But gaining approval for operations proved elusive. China’s payments market is dominated by the state-backed UnionPay card network and technology giants Alibaba and Tencent, which operate the widely used Alipay and WeChat Pay apps."}],[{"start":61.76,"text":"In 2012, the World Trade Organization ruled in favour of the US in a lawsuit challenging China’s de facto ban on foreign payment providers."}],[{"start":70.24,"text":"It said the market should have been opened when the country acceded to the WTO in December 2001, but Beijing ignored the ruling."}],[{"start":78.28,"text":"As part of a trade deal struck between the US and China during Trump’s first term, Beijing agreed to accelerate approvals for US card companies. Joint ventures by American Express and Mastercard gained approval in 2018 and 2020, respectively."}],[{"start":94.36,"text":"McInerney on Tuesday attributed Visa’s approval to “the important role of the leaders of the US and China in pursuing a constructive and strategically stable relationship”."}],[{"start":104.76,"text":"There has been a flurry of diplomacy between Trump and Xi this year. The two leaders met in Washington last month for the second time this year after Trump visited Beijing in May."}],[{"start":113.64,"text":"They are set to meet again on the sidelines of the Asia-Pacific Economic Cooperation forum in Shenzhen, southern China, next month and at the G20 summit in Miami in December."}],[{"start":125.04,"text":"McInerney was part of a business delegation that accompanied Trump to Beijing in May, during which the chief executive met Pan Gongsheng, governor of the People’s Bank of China."}],[{"start":134.24,"text":"Visa’s approval “should be viewed as a goodwill gesture from Beijing towards Washington ahead of the next meeting”, said George Chen, partner and chair of the digital practice at the Asia Group."}],[{"start":145.8,"text":"It could also raise hopes for other US financial groups awaiting regulatory approvals to operate in China, including Citigroup and Ken Griffin’s Citadel Securities."}],[{"start":156.42,"text":"With the green light, Visa would become the first foreign card network to operate a wholly owned clearing business in mainland China."}],[{"start":164.6,"text":"But its long wait means the company faces a dramatically changed market as QR code payments through Alipay and WeChat Pay dominate everyday transactions."}],[{"start":174.8,"text":"The payment apps also already support linking cards from Visa, Mastercard and American Express, part of a broader campaign by China since 2024 to make spending easier for foreign visitors."}],[{"start":187.16,"text":"Despite the approval delay, Chen said the opening should be viewed as a “positive signal of China’s willingness to expand opportunities for foreign companies and strengthen confidence in the country’s financial services market”."}],[{"start":204.68,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1791886086_9673.mp3"}