visimoney
TLDR:
- Chinese fintech companies have not been able to challenge U.S. financial dominance.
- Obstacles include protection against Chinese acquisitions, data privacy concerns, and regulatory differences.
In a recent article published by IFRI, it is discussed why Chinese fintechs have failed to reshape international finance despite their advancements in financial technologies. The main reason for this failure is the inability to challenge the dominance of U.S. financial systems. This is due to various obstacles such as protection measures against Chinese acquisitions, concerns about data privacy, and regulatory differences between countries.
One of the key issues hindering the adoption of Chinese fintechs abroad is the cultural and regulatory differences that make it challenging for these companies to expand internationally. Additionally, the technological benefits of Chinese fintechs are not significant enough to outweigh the advantages of U.S. dollar-based systems, especially in cross-border payments.
Furthermore, concerns related to financial sanctions have led some countries to explore alternative payment systems, but the impact of this on Chinese fintechs has been minimal. Overall, Chinese fintech companies have struggled to gain a foothold in reshuffling international finance, largely due to the strong presence and advantages of U.S. financial systems.
