eChinacities.com
What foreign banks issue domestic credit cards in China?
Since early 2012, Citibank has become the first non-Asian financial institution to gain approval to offer credit cards in China. This event undoubtedly marks one of the most important shifts in modern Chinese financial history, opening up a currently largely untapped credit market. The process has been complicated, but the result is probably one of the most significant in modern China’s financial history.
Previously, Citibank could only offer credit and debit cards in partnership with Shanghai Pudong Development Bank (SPDB), and the customers would exclusively belong to the Chinese partner. After threats from the World Trade Organisation over the financial legality of UnionPay’s monopoly on the Chinese market, the Chinese government has finally relented and allowed Citibank to access a market of over a billion potential credit consumers.
Applications for a credit card with Citibank are likely to be considerably more straightforward than with Chinese counterparts, especially as the bank’s global status means they are considerably less threatened by people defaulting on payments. The scheme is not yet fully launched.
Can I link my existing international credit card to a Chinese account?
Yes. If you already have an international credit card, and open a bank account with any Chinese branch (China Merchant’s Bank, Bank of China, etc.), you will have the option to link the two accounts. If you leave the country with unpaid credit card bills, the amount will be withdrawn from your existing overseas account to which your credit card is linked. The benefits of this approach are obvious: you can earn RMB and then pay off credit-debt directly with this money. For many foreigners, this will probably be a preferable option to applying for a domestic credit card, which, as indicated above, can be an arduous process.
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What foreign banks issue domestic credit cards in China?
Since early 2012, Citibank has become the first non-Asian financial institution to gain approval to offer credit cards in China. This event undoubtedly marks one of the most important shifts in modern Chinese financial history, opening up a currently largely untapped credit market. The process has been complicated, but the result is probably one of the most significant in modern China’s financial history.
Previously, Citibank could only offer credit and debit cards in partnership with Shanghai Pudong Development Bank (SPDB), and the customers would exclusively belong to the Chinese partner. After threats from the World Trade Organisation over the financial legality of UnionPay’s monopoly on the Chinese market, the Chinese government has finally relented and allowed Citibank to access a market of over a billion potential credit consumers.
Applications for a credit card with Citibank are likely to be considerably more straightforward than with Chinese counterparts, especially as the bank’s global status means they are considerably less threatened by people defaulting on payments. The scheme is not yet fully launched.
Can I link my existing international credit card to a Chinese account?
Yes. If you already have an international credit card, and open a bank account with any Chinese branch (China Merchant’s Bank, Bank of China, etc.), you will have the option to link the two accounts. If you leave the country with unpaid credit card bills, the amount will be withdrawn from your existing overseas account to which your credit card is linked. The benefits of this approach are obvious: you can earn RMB and then pay off credit-debt directly with this money. For many foreigners, this will probably be a preferable option to applying for a domestic credit card, which, as indicated above, can be an arduous process.
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