The future leader of China, Xi Jinping, is visiting the U.S. this week. Behind closed doors, tense discussions will be had around issues from the Pentagon’s renewed focus on ‘force projection’ in the Pacific to China’s currency and trade policies. Publicly, both U.S. and Chinese officials will reiterate the two countries’ ‘common interests’ and ‘shared goals.’
Never one to be left out of something seemingly important and always one to obsequiously praise the heir apparent of the world’s future superpower, Wall Street decided it needed to write a letter to Xi (via Politico) to tell him how great he is and how important they are.
In an interesting turn of events, the man Wall Street is courting is far from a member of the proletariat. Xi is a noted princeling, the term for members of an elite group who attended prestigious schools together and, like their parents did before them, now hold a variety of powerful positions in China’s party apparatus.
What do the bankers want from their new favourite princeling?
As always, banks just want to help, to “be of assistance as China continues to grow and develop.” And that means developing a modern financial system, ASAP:
“…the ability of a modern economy to weather, absorb, and move beyond inevitable economic adjustments is directly related to the depth, flexibility, and resilience of the financial sector. For all these reasons, an effective and efficient financial sector is the essential basis upon which the growth and vitality of all other sectors of the economy depend. The fastest way for China to acquire the modern financial system it needs is to open its financial sector to greater participation by foreign financial services firms.”
The letter goes on to say the firms represented by the undersigned signatories look forward to doing tons and tons of business in China in the years that come. Well, not really, but that’s what the letter is really saying.
Here’s the full the letter (via Politico):