Opinion & Analysis
Digital, Tech & Data

Why Chinese fintechs have failed to reshuffle international finance

Sourced from our Editorial Partner Ifri - Mar 19, 24

New Chinese financial technologies, including unparalleled electronic payment systems, have so far failed to threaten U.S. financial dominance.

  • Obstacles include protection against Chinese acquisitions and concerns about data privacy.
  • Cultural and regulatory differences have also made Chinese fintechs’ adoption abroad uneasy.
  • Cross-border payments are even more difficult to convert to these fintechs, whose technological benefits are small compared to the advantages of U.S. dollar-based systems.
  • Concerns related to financial sanctions have heightened various countries’ interest in alternative payment systems, with little effect so far.

About the Author:

Martin Chorzempa is a Fulbright Scholar in Germany and a Luce Scholar at Peking University’s China Center for Economic Research, he worked on comparative financial regulation, China’s financial reforms, and the rise of innovative financial technology in China. 

 

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