The U.S. Federal Reserve has given the go-ahead for state-owned Chinese banks to enter the U.S. banking market.
The U.S. central bank on Wednesday approved an application by China's biggest bank - the Industrial and Commercial Bank of China - to buy an 80 percent stake in the U.S. branch of the Bank of East Asia. It is the first time a Chinese state-controlled company has been approved to acquire a U.S. bank.
The landmark step comes days after U.S. and Chinese officials held high-level financial talks in Beijing. U.S. officials said during the talks that China has made progress on a number of issues, including taking steps toward a more open and market-oriented financial system.