New York's American Express JV receives final nod to launch operation in China



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New York's American Express JV receives final nod to launch operation in China

The People’s Bank of China (China’s Central Bank) had sealed the final approval to a clearing licence for a JV between American multinational credit card provider American Express and LianLian Digitech Co. Ltd., named as Express Technology Services Co, a landmark move from the China’s Central Bank which would make the New York City lender and financial services provider the first foreign credit card operator on the world’s second-largest economy.

Nonetheless, the latest approval for American Express-LianLian Digitech Joint Venture, which would enable the American multinational credit card provider American Express or AMEX to spread its wings into China, came forth against the backdrop of a rapidly deteriorating trade relationship between the Washington and Beijing, while the tensions had escalated further over the recent past followed by Trump Administration’s withdrawal of special privileges for the China-controlled island city of Hong Kong.

AMEX JV approval reflects China’s intent to open up its financial industry, says PBOC

In point of fact, the People’s Bank of China (PBOC) had issued a statement on Saturday evening Asia-Pacific hours, saying that it had cleared the licence of approval for a financial services provider named Express Technology Services Co., a Joint Venture between the American Express and LianLian DigiTech Co.

Ltd., while the Central Bank of China had also added that the move could mirror China’s intent to open up its financial industry. Aside from that, the People’s Bank of China had told in a statement in January this year that China’s Central Bank had received an American Express application to launch its credit card operation in China.

Meanwhile, adding that the New York City-based financial services provider was expecting to initiate its services in China later this year, Chairman and Chief Executive of American Express, Stephen J. Squeri said in a statement, “This approval represents an important step forward in our long-term growth strategy and is an historic moment, not only for American Express but for the continued growth and development of the payments industry in mainland China.