Financial services in China
In China, a finance dominated by the state and put at the service of political power does exist in the 21st century"
In a note Finance in order: how Chinese power puts the financial sector at the service of its ambitions, the Rousseau Institute opens the debate on the objectives of a financial system. This monograph of the Chinese system produced by expert , post-doctoral researcher at Fudan University (Shanghai), and which we was able to consult, shows that there is not just one model. If the Chinese financial model is neither exportable nor imitable, in the sense that it is too entangled with the Communist Party, the sociologist, far from being a neo Maosite, recalls in our interview that there can be a finance that is not essentially subject to private interests. As was the case in post-war France.
The European know of China its commercial ambitions, its power strategy, and its products distributed by Amazon. They have heard of Huawei, TikTok or even Alibaba. But they ignore all the financial actors. Is there no bank in the country of the Chinese Communist Party (CCP)?
It's quite the opposite. The Chinese financial sector is very prosperous. It’s nationwide. Take the Industrial and Commercial Bank of China (ICBC). At the start of 2020, this establishment had 3,900 billion euros, more than one and a half times the national GDP. As a result, ICBC is establishing itself as the largest bank in the world, far ahead of BNP Paribas, the second in Europe, with 2,400 billion euros in balance sheet. And ICBC, with 10% of the assets on its books, is not the only player in the industry. In June 2020, Chinese banks had 39 trillion euros, twice the US GDP ... and three times the Chinese GDP.
Financial marketers may not be flavour of the month at the moment. But that should not stop you from picking yourself (and your reputation) up off the floor. There is still business out there to be won and never has it been more competitive in the financial and investment markets