Visa gets approval to prepare for domestic business in China

Beijing has granted Visa approval to initiate preparations for establishing a domestic bank card clearing institution in China. This marks a significant milestone, as the US payments giant joins industry rivals such as American Express and Mastercard in entering China's highly regulated financial sector. The People's Bank of China (PBOC) issued the administrative approval to Visa Information Technology (Beijing) Co Ltd, allowing the foreign-invested enterprise to commence preparatory work.

Visa CEO Ryan McInerney expressed his satisfaction with the approval, stating that it reflects the long-standing commitment of Visa to China. The approval follows a recent high-level meeting between US President Donald Trump and Chinese President Xi Jinping, where the CEOs of major US companies, including Mastercard and Visa, participated.

The PBOC will review Visa's application within a year, after which the company will be eligible to apply for a bank card clearing business license, enabling it to commence operations. Visa initially sought an unprecedented 100% ownership stake in a future joint venture, which sources suggest is a goodwill gesture from Beijing towards Washington ahead of their upcoming summit.

Greater market access in financial services has been a priority for the US, with Beijing urged to create a more open and level playing field for foreign firms operating in China's financial sector.