ReutersA gold-painted performer promotes credit cards for a Chinese bank in Shenzhen, China, in this file photograph from 2004.China is taking a step toward easing its grip on credit cards, potentially resolving a long-running trade dispute with the U.S. and allowing foreign companies such as Visa Inc., MasterCard Inc. and other electronic-payment processors to have a greater presence there. The State Council, the nation’s cabinet, said in a statement on the main government website late Wednesday that qualified domestic and foreign firms can apply to set up bank card-clearing operations, a process that involves settling payments between banks and vendors. The statement, which said the move is part of efforts to open up China’s financial sector, followed a cabinet meeting chaired by Chinese Premier Li Keqiang. The statement didn’t set out a timeline or release further details, so the speed and scope of any move to open up China’s credit-card market isn’t clear. Currently, China UnionPay Co. has a near monopoly on processing and clearing yuan-denominated payments made by bank cards and credit cards. The state-controlled firm has close ties to China’s central bank. UnionPay officials couldn’t be reached for comment late Wednesday. Visa V, -0.95% , MasterCard MA, -0.01% , American Express Co. AXP, +0.37% and other foreign firms have been jockeying for a greater share of that business for years. China is still fostering a nascent consumer class, and credit cards are widely believed to have tremendous room to grow. WSJ.com