Yuan for the China-UK expressway

The ongoing sixth China-UK Economic and Financial Dialogue has seen the two sides in similar spirit but with different expectations. Both sides believe the dialogue will promote bilateral trade and investment ties, strengthen macroeconomic policy coordination, boost the financial sector's development and cooperation, and support global economic recovery.

But their expectations are different. China, to begin with, expects that more Chinese banks would soon be allowed to open branches in the UK. Since the 2008 global financial crisis, the Financial Services Authority - the United Kingdom's financial services regulator - has made it more difficult for foreign banks to set up branches in the country, because the authority has less control over them. As opposed to branches, which are offshore arms of foreign banks, subsidiaries are subject to the capital requirements that apply to Britain's local banks. Little wonder, only Bank of China has a branch in London, although China's main banks have set up office in the city.

Discussions on allowing Chinese banks to open branches in the United Kingdom have been heated in recent years. And China boosted it as in June, China Construction Bank, China's second-largest lender, was selected as the first clearing service provider for yuan trading in London.