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China Unseats US As Global Investment Leader In Financial Technology: Report (fortune.com)

Posted by BeauHD on from the take-your-seat dept.

Paul Fernhout writes: China has unseated North America as the global investment leader in financial technology, or "fintech," according to Citigroup's latest report on "digital disruption." The researchers attribute the power shift to the rise of what they term "Chinese dragons," an industry term for the biggest upstarts in Asia. Think of Ant Financial, the payments spinout of Alibaba, as well as Lu.com, JD Finance, and Qufenqi, emerging eastern juggernauts that are generally less familiar to consumers in the west. China accounted for more than half of all fintech investments globally in the first nine months of last year, the report said. Specifically in terms of venture capital, the country more than doubled its worldwide share of the investment category, rising to 46% of the global total versus just 19% the same period in 2015. The U.S., meanwhile, sunk to 41% of the global total from 56% during the same period in 2015, putting it behind China.

9 of 120 comments (clear)

  1. Own goal! by mspohr · · Score: 5, Informative

    Trump kills TPP, giving China its first big win
    https://www.washingtonpost.com...

    "Economists have warned that many of Trump’s proposals — including suggestions that he would impose blanket double-digit tariffs on goods from Mexico and China — could backfire on the American economy by causing prices to rise or igniting a trade war,"

    A retreat from the TPP now gives Beijing, which has been negotiating its own trade blocs, a chance to fill a void. Since Trump's election, the Philippines, Singapore and Malaysia have shifted toward China's proposed Regional Comprehensive Economic Partnership, which would also reduce tariffs — without many of the standards put in place by Obama's plan — and redirect Asian trade China's way. Other nations in the region are likely to follow suit.

    --
    I don't read your sig. Why are you reading mine?
    1. Re:Own goal! by Anonymous Coward · · Score: 5, Informative

      It's what slashdot overwhelming wanted and bitched about incessantly for the last 3 years or so.

    2. Re:Own goal! by thinkwaitfast · · Score: 4, Informative
      EFF Delivers 210,000 Signatures Opposing Trans-Pacific Partnership

      The Case Against Ratifying the Trans Pacific Partnership

      Full Text of Trans-Pacific Partnership Released (Officially, This Time)

    3. Re:Own goal! by Z80a · · Score: 4, Insightful

      You know that TPP was not about america but the mega multinational corporations, right?
      It would contain the SOPA/PIPA shit, an shady tribunal that would allow the mega corporations to sue countries for "loss of potential profits" among other many, many fun things.

    4. Re:Own goal! by jandersen · · Score: 5, Insightful

      Exactly. China has spent the last several decades making friends in the developing countries in Asia, Africa and South America, before going on the charm offensive in particularly Europe. I work for a global organisation, and have colleagues from Pakistan, who can't stop heaping praise on China, and you can understand why. America, they say, comes in and behave like colonial masters, ordering them about, whereas China help them achieve things they need and which they take pride in - like a big highway from China to Pakistan, apparently, and a large seaport (if I remember correctly). Yes, everybody does understand that this also serves China's interests, but that is sort of obvious, isn't it?

      The point is - China are in a good position to take over from America, not just in APAC, but more or less globally; and probably in a much less threatening way than the US. A few years of Trump will help China enormously - when I talked to my Chinese acquaintances about Trump before the election, they all hoped that he would be elected - and it was not because they thought he will "make America great again". Brexit is another thing that they are quite happy about - it weakens both EU and UK, so they will be more open to making deals with China.

    5. Re:Own goal! by dunkelfalke · · Score: 4, Insightful

      You're overwhelmed with troublesome refugees? Maybe a coast guard or even some semblance of border security is YOUR problem, we're not taking any of them.

      Now that really pisses me off. USA has destabilised the region in first place. You break it - you buy it. But instead you insist that they are not your problem.
      That is why I say "fuck you and the horse you rode on in".

      --
      "It's such a fine line between stupid and clever" -- David St. Hubbins, Spinal Tap
  2. Tradewar by backslashdot · · Score: 5, Insightful

    We are going to put tariffs on imports? That will not help the economy. It won't help anyone.

    Products will get more expensive for people who have money and incomes today. If we forcefully bring manufacturing jobs back here, it means that workers and business owners have to pay extra for goods due to the salaries of the workers in those jobs.

    I mean, we have 90 million people not working today of which only about 20 million can probably work -- maybe even less. The rest are either too young, students, disabled, or old.

    So we are going to put that 20 million to work, by paying $10 for a screwdriver instead of $5? By paying $300 for a phone that may cost only $200 today?

    From the perspective of an income earner isn't that worse than being taxed and having a portion of the tax go towards welfare for the unemployed?

    The advantage of giving someone welfare over paying them to do unnecessary work is that the person on welfare would have time to learn new skills plus you lose the overhead costs. And yes if someone or something else can do my work more efficiently then my work is by definition unnecessary.

  3. The war is over. Survival now matters by thesupraman · · Score: 4, Insightful

    Yes.. You are addicted to cheap consumer goods.
    Right now that means a proportion of the money you spend hours to China.. And a big lump goes to offshore tax havens for the corps.. But at least their domestic share price goes up..

    However.. Very soon those goods will be designed owned and build by purely Chinese companies. Then much more of what you spend will leave the country.. forever.

    So.. you can either give up on your cheap consumer goods of wave goodbye to your economy.

    It's really that simple. China is already out spending America on r&d. It's people are more success hungry. They have less invested in a nice safe middle class existence. They are going to innovate and produce you in to the dirt.
    In exactly the same way the us did to Europe back in the day.

    Your choices are few and difficult.

    1. Re:The war is over. Survival now matters by backslashdot · · Score: 5, Informative

      No, it won't leave America forever.

      First off, as an aside, we aren't giving the Chinese money for nothing. They are giving us product in return. We keep the benefit of that product forever. Even if it's a toy that helps in child development. The lower cost screwdriver may allow you to live in a better house.

      More importantly, the money isn't gone forever. You seem to believe that we will never be able to offer anything the Chinese would ever want. That's just basically false. They are buying stuff from us like airplanes, construction equipment, entertainment, and high tech stuff. Even though they have 1.3 billion people, they still cannot and never will be able to make *everything* they would ever want. It's basically defeatist to say the Chinese won't want anything we can make. How does Germany have a trade surplus with China? Germans buy nearly as much stuff per capita from China as Americans .. yet they are consistent with a trade surplus with China. That's because Germans have figured out what Chinese want to buy and they are selling to them. China gets a lot of its machinery from Germany. Germany doesn't have tariffs on China and it does robust trade two ways.