Citibank was the first U.S. bank to establish operations in China when it opened a branch in Shanghai in 1902. From the early 1940s to 1984, Citibank was absent from China, but since 1984 it had gradually restored an active presence. In 1997, Citibank had reached a crossroads. It had to decide how best to participate in the rapid growth of the Chinese economy and the huge influx of foreign direct investment. Citibank had many competitive advantages on the basis of which it was establish … Read more »

Citibank was the first U.S. bank to establish operations in China when it opened a branch in Shanghai in 1902. From the early 1940s to 1984, Citibank was absent from China, but since 1984 it had gradually restored an active presence. In 1997, Citibank had reached a crossroads. It had to decide how best to participate in the rapid growth of the Chinese economy and the huge influx of foreign direct investment. Citibank had many competitive advantages on the basis of which they had established a unique strategy that excluded joint ventures. In 1997 included a number of new potential services credit cards, RMB (Chinese currency) banking, and various paid services. Government regulations have greatly the types of loans from foreign banks might limited, but it was expected that these regulations could soon be liberalized. How should Citibank, NA in China is best positioned for the future?
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from
David W. Conklin,
Larry Li,
Adrienne I. Young
Source: Ivey Publishing
16 pages.
Publication Date: Dec 22, 1997. Prod #: 97G016-PDF-ENG
Citibank, N.A., China HBR case solution

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