A potential turning point in a troubled relationship could also help foreign banks regain their footing.
China’s more than two years of largely unannounced, pre-emptive trade embargoes against Australia of everything from barley to wine may be a thing of the past. That could also be a positive sign for foreign banks operating in China and throughout the region.
The recent thaw was largely telegraphed by various public statements and meetings in recent weeks between the two countries coinciding with the 50th anniversary of the establishment of diplomatic relations.
This also appears to have been subsequently confirmed at a press conference by the Chinese foreign ministry when spokesperson Mao Ning indicated that Australian Foreign Minister Penny Wong had met her counterpart Wang Yi in China on Wednesday.
Ning said the anniversary was an opportunity to enhance dialogue, increase cooperation and manage differences based on mutual respect.
Importantly, Ning mentioned China sought to seek common ground while managing differences, to bring bilateral relations «back on track» and set them on the course of «sustained growth».
The last sentence potentially provides an important clue for foreign banks operating in China, Hong Kong, and throughout the Greater China region as it seems to be a first, preliminary step in giving businesses and the banking sector more certainty about the future.
That could be a significant step given the almost three years of a draconian zero-Covid policy and the largely arbitrary measures China appeared to take against many countries and businesses in a period of heightened geopolitical tensions with the US and Europe.
