Business
22:14, 08-Apr-2018
Experts: Trade tensions pose little threat to Chinese fintech companies
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Escalating trade tensions between China and the US is one of the most closely followed issues during this year’s Boao Forum. Some are worried that Chinese tech companies, fintech in particular, will be hurt by Trump’s actions but Dong Qi, founder and CEO of Finup Fintech Group, does not think that the trade conflict will have a huge impact.
Dong said that the US is not considered a top market for China’s fintech firms. That is because American financial service companies have “deep penetration” in their domestic market, leaving less market share for foreign companies.
Dong said that Chinese fintech companies are exploring other potential markets, such as South America and Southeast Asia. “China-US trade tensions will not make fintech firms a casualty,” Dong said. He is of the view that information exchange in tech will not be disadvantaged either.
In addition, China’s own financial service market has huge potential, Dong said. Chinese fintech companies have experienced “fierce competition” during the last few years, which means final winners in the area will be strong enough to compete with foreign companies, providing better services to Chinese consumers.