The strategy of Citibank (China) Co. Ltd. has developed (“Citi”) in China, as the economic environment has changed. Since the beginning of its operations in China in 1902, the global banking giant is opening offices as branches (if allowed by the government), rather than subsidiaries preferred. In 2001, China announced that it join the World Trade Organization, and would take a number of measures to ensure the opening of the banking sector. Until that time, Citi had realized that the pace of growth in Ch … Read more »

The strategy of Citibank (China) Co. Ltd. has developed (“Citi”) in China, as the economic environment has changed. Since the beginning of its operations in China in 1902, the global banking giant is opening offices as branches (if allowed by the government), rather than subsidiaries preferred. In 2001, China announced that it join the World Trade Organization, and would take a number of measures to ensure the opening of the banking sector. Until that time, Citi had realized that the pace of growth in China was very slow. Therefore, the Bank evaluates its strategy and decided to enter the market as an embedded, or truly local bank. Citi July 2008 agreement with China Unionpay (“CUP”), China’s only national bankcard association, allows Citi to debit cardholders the convenience of access to the vast network Cup in China enjoy. The agreement is the latest milestone in the Bank’s strategy, its presence in the emerging and fast growing Chinese market by establishing a number of strategic alliances. Why CitiUnionpay has changed its strategy and began providing such cooperative alliances? What are the risks and benefits associated with the use of such cooperative strategies?
«Hide

from
Stephen Ko,
Havovi Joshi
Source: University of Hong Kong
11 pages.
Release Date: 22 January 2009. Prod #: HKU806-PDF-ENG
Citibank Co-Operative strategy in China: The Renminbi Debit Card HBR case solution