Tuesday, October 24, 2006

Chinese Credit Cards

General Electric and Wal Mart are launching a credit card in China. Less than 5% of the Chinese population have credit cards. They need to avoid the big, obvious, risks; getting screwed by their partners or the government or caught up in a financial crash. However, that 5% can be expected to rise massively if the Chinese economy continues to develop and becomes more of a consumer economy. General Electric getting in on that market early has to be a decent idea as reputations will matter a lot while the Chinese are still adjusting to the idea of a credit card.

This painting, which is contained in the book of contemporary Chinese paintings "China", seems oddly appropriate:

Picture via Marginal Revolution.


Anonymous said...

hmmm... Credit card companies lose so many customers... :) 5% of the Chinese population is more than 100 % of the population in Great Britain or France. I guess if credit card issuers would attract the majority of the Chinese population, they will live like oligarchs :)

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