UPDATE 1 — Visa gets approval to prepare for domestic business in China

(Adds details and background throughout) Oct 13 (Reuters) — US payments firm Visa has received approval from China's central bank to begin preparations for a domestic bankcard clearing institution in the country, it said in a statement on Tuesday. The approval comes after US President Donald Trump's summit with Chinese leader Xi Jinping earlier this year, which included more than a dozen CEOs of top US companies, including those of payment giants Mastercard and Visa. Visa was hoping to break into the Chinese market with a 100% ownership stake in a future joint venture license like rivals Mastercard and Amex, sources told Reuters at the time. In May, Trump told Fox News that he had pressed Chinese officials on granting Visa greater access to China's credit card market. China opened its market to foreign bank companies in 2016, but required foreign service providers to set up technology and data infrastructure and backup data systems in China. Mastercard received approval to clear domestic yuan-denominated bankcard transactions through a joint venture with NetsUnion in 2023. "The approval of our Application to Prepare marks a significant step forward in Visa's long-standing commitmen