Visa gets Beijing's green light for bank card business

US credit card giant Visa announced Tuesday it had received approval from the People's Bank of China for setting up a bank card clearing business in the country, Report informs via CNBC.

The news comes as the US and Chinese presidents plan for their third meeting this year.

"This marks an important milestone toward the company serving China's domestic payments market," Visa said in a statement.

"For more than 40 years, Visa has been an active contributor to China"s dynamic payments landscape," Visa CEO Ryan McInerney said. "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 US President Donald Trump's business delegation to Beijing in May and subsequently became chair of the US-China Business Council in June. The Visa CEO also led a trip to Beijing in early September.

"The timing is notable," said George Chen, partner and chair of digital practice, 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," he said. "The move suggests that Beijing is keen to demonstrate tangible progress for American businesses before Trump"s next visit to China."

Trump told Fox News after his Beijing trip in May that he brought up Visa's request to gain China market access. After the summit in September, China said it would approve applications from all foreign financial institutions to operate in the country.