In an effort to navigate the anticipated challenges of U.S.-China relations under President-elect Donald Trump, Chinese Vice Premier He Lifeng has recently met with several prominent U.S. financial executives. These meetings come as Beijing braces for the possible imposition of tariffs on Chinese goods, a key part of Trump’s campaign rhetoric.
He Lifeng, one of China’s four vice premiers and a leading figure in the country’s economic and financial policymaking, has been actively seeking to establish connections with influential players in American financial circles. Over the past month, He held discussions with Larry Fink, CEO of BlackRock, on December 5, and John E. Waldron, President of Goldman Sachs, on December 4. These meetings followed an earlier engagement with Citigroup CEO Jane Fraser on November 21, according to Chinese state media reports.
Peter Alexander, founder of the Shanghai-based consultancy Z-Ben Advisors, noted that these meetings reflect China’s strategic approach to diplomacy. “The Chinese are exploring every possible pathway to reach those coming into power in Washington under Trump’s administration,” Alexander said. “Backchannel communications are a preferred strategy for China when establishing lines of dialogue.”
Of the financial firms involved, Goldman Sachs acknowledged the reports, while Citigroup and BlackRock declined to comment when contacted by CNBC.
Wall Street’s role in shaping U.S.-China trade policy
As Trump assembles his administration, which is set to include at least 10 billionaires, several appointees have extensive experience in finance. Notable figures include Scott Bessent, a hedge fund manager nominated for Treasury Secretary, and Howard Lutnick, CEO of Cantor Fitzgerald, who is expected to play a role in trade policy.
Clark Packard, a research fellow at the Cato Institute, believes Wall Street insiders within the administration could temper some of the more aggressive trade measures favored by Trump. “I think Wall Street voices in Treasury and other departments will act as a moderating influence on protectionist trade policies,” Packard said. “While there will likely be some protectionist elements, these individuals may work to dial back the more extreme actions.”
Packard also highlighted concerns about potential market reactions to aggressive trade policies. “Treasury officials are particularly aware of how markets might respond,” he said. “The only factor that could dissuade Trump from pursuing hardline policies is a negative reaction from the financial markets.”
Economic uncertainty and China’s preparations
As U.S. markets head for a rare second consecutive year of gains exceeding 20%, China’s financial markets have also shown resilience. After a challenging start to the year, Chinese stocks rebounded following Beijing’s announcement of economic stimulus measures in late September, which were reaffirmed during a high-level meeting earlier this week.
China’s recent engagement with Wall Street executives forms part of a broader strategy to prepare for potential economic turbulence. Zongyuan Zoe Liu, a senior fellow at the Council on Foreign Relations, described Beijing’s actions as a way to keep its “options open.”
“By hosting Wall Street leaders and implementing policies like export controls on critical minerals, China is preparing for worst-case scenarios,” Liu said. However, she cautioned that financial institutions alone are unlikely to significantly influence U.S.-China tensions. “Wall Street executives prioritize business opportunities and are unlikely to abandon markets that align with their interests,” she added.
Chinese state media has framed He Lifeng’s meetings as an indication of Beijing’s willingness to further open its financial sector and attract long-term foreign investment. State media often portray foreign capital inflows as a vote of confidence in China’s domestic market.
Strengthening financial ties amid rising tensions
In addition to his meetings with Fink, Waldron, and Fraser, He Lifeng also met with Andrew Schlossberg, CEO of Invesco, on November 12, and Mark Tucker, Chairman of HSBC Group, on November 14. Both meetings were reported by Chinese state media. While HSBC stated it had no further comment, Invesco did not respond to requests for clarification.
For years, capital markets have been one of the most interconnected aspects of U.S.-China relations, according to Winston Ma, an adjunct professor at NYU School of Law. Ma noted that these financial connections have often acted as a stabilizing force in the bilateral relationship.
“When cross-border financial ties are constructive and cooperative, they can lead to mutual prosperity,” Ma said. “However, if the relationship turns adversarial, it risks mutual assured destruction—much like the Cold War principle of deterrence.”
Beijing’s calculated approach
China’s outreach to Wall Street reflects a broader effort to mitigate the potential fallout from Trump’s trade policies. By fostering relationships with influential financial leaders, Beijing hopes to maintain a degree of stability in its economic ties with the United States.
At the same time, China is signaling its readiness to adapt to whatever challenges may arise. From implementing domestic economic stimulus measures to exploring alternative export markets, Beijing appears determined to weather any disruptions to its trade relationship with the U.S.
While the meetings with financial executives underscore China’s commitment to maintaining open dialogue, it remains unclear how much influence these interactions will have on the Trump administration’s approach to trade and economic policy.
A critical juncture for U.S.-China relations
As Trump prepares to take office, the future of U.S.-China relations hangs in the balance. With trade tensions looming, both countries are navigating a complex landscape of economic and political uncertainty.
For China, engaging with Wall Street leaders represents a pragmatic effort to safeguard its economic interests. For the U.S., the involvement of finance-savvy individuals in Trump’s administration could play a pivotal role in shaping the direction of trade policy.
Ultimately, the coming months will reveal whether these backchannel communications and strategic engagements can help ease tensions or whether the relationship between the world’s two largest economies will face further strain. For now, Beijing is keeping its options open while bracing for a potentially turbulent period ahead.
