Visa Gains China Bank Card Clearing Approval as U.S.-China Leaders Prepare for Third Summit

Visa Secures Critical Regulatory Milestone in China’s Tightly Controlled Financial Market

U.S. credit card giant Visa announced Tuesday it received approval from the People’s Bank of China (PBOC) to establish a bank card clearing business in the country, marking a significant breakthrough into one of the world’s most restricted financial markets. The company described the approval as an important milestone toward serving China’s domestic payments market, following decades of work in the region through limited partnerships with Chinese banks.

The timing of the approval carries strategic significance as U.S. President Donald Trump and Chinese President Xi Jinping prepare for their third meeting this year at the upcoming APEC Leaders’ Meeting in Shenzhen next month. The regulatory green light suggests Beijing wants to demonstrate tangible progress for American businesses before the high-level diplomatic encounter.

“For more than 40 years, Visa has been an active contributor to China’s dynamic payments landscape,” Visa CEO Ryan McInerney said in a statement. “We look forward to taking the necessary steps in the process, pursuant to the PBOC’s regulations, to begin operating domestically in China.“

McInerney joined President Trump’s business delegation to Beijing in May and subsequently became chair of the U.S.-China Business Council in June. The Visa CEO also led a separate trip to Beijing in early September, maintaining high-level engagement with Chinese officials during a period of complex bilateral relations.

Strategic Approval Signals Political Goodwill Ahead of Summit

“The timing is notable,” said George Chen, partner and chair of digital practice at The Asia Group. “Beijing chose to approve Visa’s license just ahead of the APEC Leaders’ Meeting in Shenzhen next month, where Xi [Jinping] and Trump are expected to meet again. The move suggests that Beijing is keen to demonstrate tangible progress for American businesses before Trump’s next visit to China.“

President Trump told Fox News after his Beijing trip in May that he raised Visa’s request to gain China market access during discussions with Chinese leadership. Following the September summit, China announced it would approve applications from all foreign financial institutions to operate in the country, signaling a broader opening of the financial sector after years of restrictions.

Mainland China has maintained tight control over its financial sector, favoring domestic players and restricting cross-border capital flows to maintain economic stability and policy independence. Foreign financial firms have long sought greater access to the massive Chinese market, facing regulatory hurdles and lengthy approval processes that can stretch for years.

Years-Long Application Process Culminates in Regulatory Breakthrough

Visa previously disclosed it had applied with the PBOC in May 2020 to operate a bank card clearing institution, meaning the approval process took nearly five years to complete. The company has worked with Chinese banks for dual-branded cards, arrangements in which China’s UnionPay processes transactions domestically while Visa handles overseas payments.

In January, Visa announced that mainland China-issued cards could be linked to Apple Pay for use overseas, expanding payment options for Chinese travelers while still operating within the constraints of China’s domestic payment infrastructure. These partnerships represented the limited scope through which Visa could participate in the Chinese market before receiving full clearing approval.

Rival payment networks have followed similar paths into the Chinese market with varying timelines. Mastercard’s joint venture in China began processing payments in 2024 after receiving the PBOC’s approval to begin bank card clearing preparations in February 2020. American Express was the first major U.S. card network to break through, receiving its processing license in June 2020 after getting the PBOC nod back in 2018.

Foreign Card Networks Face Uphill Battle Against Entrenched Mobile Payment Giants

Despite regulatory approval, foreign card networks confront a fundamental challenge in China’s consumer payments landscape, where mobile payment platforms dominate daily transactions. Tencent’s WeChat and Alibaba-affiliate Ant’s Alipay have achieved near-ubiquitous adoption among Chinese consumers, who routinely use smartphone-based QR code scanning for everything from street vendor purchases to major retail transactions.

These mobile payment ecosystems have reshaped consumer behavior and retail infrastructure across China, with many merchants equipped primarily or exclusively for digital wallet transactions rather than traditional card terminals. Physical cards have become increasingly secondary payment tools for many Chinese consumers, particularly in urban areas where smartphone penetration approaches 100 percent among working-age adults.

Foreign card networks will need to identify specific market segments and use cases where their services offer distinct advantages, potentially focusing on high-value transactions, business spending, international commerce, or premium consumer segments that value global acceptance and rewards programs. Building merchant acceptance networks and changing entrenched payment habits will require substantial investment and strategic partnerships with Chinese financial institutions.

Approval Reflects Broader Evolution in U.S.-China Commercial Relations

The Visa approval arrives as Singapore and China chart new cooperation frameworks focused on artificial intelligence and green economy initiatives, according to Deputy Prime Minister Gan Kim Yong, who addressed the FutureChina Global Forum. He emphasized that bilateral economic partnerships must evolve beyond traditional infrastructure projects toward technologies and industries shaping the mid-twenty-first century global economy.

At the 2026 Legislators Forum for Friendly Exchanges in Tianjin, more than 300 participants including 66 foreign legislators from 52 countries discussed how China’s development experience could translate into mutual benefits. Moses Wetang’ula, speaker of Kenya’s National Assembly, praised China’s achievements in infrastructure, technological innovation, and industrialization, calling for cooperation that creates jobs and strengthens local industries rather than merely opening markets.

Peng Qinghua, vice-chairman of the Standing Committee of the National People’s Congress, said China would continue advancing technological innovation, industry upgrades, and high-level opening during the 15th Five-Year Plan (2026-30) period, presenting opportunities for international cooperation on emerging technologies, trade, and green development.