Lawstreet Journal

American Express JV gets final nod from China’s Central Bank; to launch onshore operations in the country soon

Lawstreet Journal 15 Jun 2020 10:48pm

Image courtesy: Lawstreet Journal Business American Express JV gets final nod from China’s Central Bank; to launch onshore operations in the country soon

China's Central Bank has issued approvals for a network clearing license to facilitate a joint venture with American Express, thereby allowing it to be the first international credit card firm to begin onshore operations in China. 

The nod comes against a backdrop of high tensions between the Sino-US, with disagreements about trade and the imposition by Beijing of a Hong Kong national security law. 

In a statement on Saturday (13th June 2020), the People's Bank of China (PBOC) said that it had approved the license for Express (Hangzhou) Technology Services Co., a joint venture between American Express and LianLian DigiTech Co Ltd. It stated that the move reflected upon the opening up of China's financial industry.

In January, the PBOC said it had received an application from American Express to start operations in China. 

American Express said in a statement that it expects to kickstart transactions later in the year. 

"This approval represents an important step forward in our long-term growth strategy and is a historic moment, not only for American Express but for the continued growth and development of the payments industry in mainland China," Stephen J. Squeri, chairman and chief executive officer of American Express, said.

The PBOC also approved a bid by Mastercard 's China Joint Venture to conduct the country's bank card clearing operations, but the company has not yet obtained a network clearing license. 

Visa applied for the license back in early 2018 and is still pending approval. 

After a decade of lobbying by foreign players seeking direct access to what is expected to soon become the world's… Continue Reading...

Tagged: American Express   Joint Venture Agreement  
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