Scott Kennedy, who is the Deputy Director, Freeman Chair in China Studies at Center for Strategic and International Studies (CSIS), said on Twitter that Amex finally winning Chinese market approval is not a breakthrough for China market access. He labeled it as a #fakeopening. “NOT a breakthrough for China market access,” noted Kennedy. “Amex still at least year-plus away from operations. And why should it be required to operate in a joint venture? #fakeopening.”
He was also asked, How many American jobs will it create? Zero? Kenney replied, “Far more than 0, but difficult to calculate for financial services firms. AMEX activity in CH which requires job support in US + Repatriated profits that AMEX invests directly, puts in banks which lend to others + Chinese users that increase consumption US products.”
Kennedy then added, “Other cross-border commercial activity that emerges out their business. + Same when Visa, Mastercard follow. + Marginal improvement in efficiency of China’s own firms, permits smarter investments, greater consumption. Lesson: Liberalization benefits diffuse, but exist.
American Express getting market approval in China is being widely reported in the media as a promising development in light of the current trade war. Philippe Roy, Director Global Client Group Europe for Amex, reflecting on the news said, “American Express just became the first US credit card company to get the green light to start building its own payments network in China.”
NOT a breakthrough for China market access. Amex still at least year-plus away from operations. And why should it be required to operate in a joint venture? #fakeopening https://t.co/BoT75tt6HV
— Scott Kennedy (@KennedyCSIS) November 9, 2018
Earlier this year Scott Kennedy spoke about US-China relations: