SWF Radar

The Economic Observer reports that, “Obstacles have been cleared for two Chinese state-owned banks – the Industry and Commerce Bank of China [ICBC - also known as the Industrial and Commercial Bank of China] and the China Construction Bank [CCB] – to set up branches in the United States, according to industry sources. The US Federal Reserve was initially skeptical of the two banks, which are backed mainly by China’s sovereign wealth fund, the China Investment Corporation (CIC). But China had made assurances [during the fourth Sino-US strategic dialogue concluded last week] that the CIC would not interfere in the operation and administration of the two banks, and would strictly play by market rules.”

ChinaStakes.com has more on the subject, providing more detail on the talks between Liu Mingkang, chairman of China Banking Regulatory Commission (CBRC), and Ben Bernanke, chairman of the US Federal Reserve Board, during the fourth Sino-US Strategic Economic Dialogue (SED).