Opening up of key sectors will boost domestic market: MasterCard

Dennis Chang

What impressed you the most about the annual Government Work Report released during the ongoing two sessions of China’s top legislative and advisory bodies in Beijing? What do you think was the most important issue raised by the government in this report compared with the previous sessions?

A number of small and medium-sized enterprises (SMEs) have benefitted from changes in the government policy which removed the obstacles for them to expand. But the government acknowledges that there is still room for improvement, particularly in reducing the high costs that they face when trying to obtain financing. We believe that opening international systems and standards are the most efficient and fairest way to help most SMEs. From the open international payments system, a number of effective solutions have sprung up that lower the hurdles that SMEs have to jump when trying to get the capital they need to grow their ideas.

In particular, the biggest hurdles SMEs face are supply chain financing and the high costs of operational capital. These issues are beyond their control and need a system-wide solution. By connecting to global networks, which are built on open standards and leveraging the established system for international payments, many of the problems that SMEs have solve themselves. Government support can give select businesses a leg-up, but it’s more sustainable in the long run to try to bring the hurdles down through opening up the system.

In the Government Work Report, Premier Li Keqiang said that the nation’s economic growth rate would be adjusted to 7 percent. Do you think your company should adjust its development strategy in China?

We remain optimistic about the Chinese market and its growth will remain strong as long as it continues to open up and internationalize. While the central government highlighted overall downward pressure on the economy, it correctly identifies openness and a shift to consumption as key drivers of China’s sustained growth and modernization. MasterCard can play a fundamental role in that shift towards consumption and prosperity by supporting businesses and consumers to complete the transactions which make them both better off.

The Work Report highlights the growth in international tourism as a key driver in the overall economic transformation and as the best travel partner for a Chinese tourist; MasterCard is right alongside the government in making it easier for Chinese tourists to enjoy exploring the world.

We believe that consumers benefit from having a wider variety of choices and we hope to be able to provide Chinese consumers with safe and simple ways to shop anywhere and on any device and support the development of a truly cashless society in China as the market opens.

Amid the global economic slowdown, especially in developed economies, and China’s economic adjustment, what is your greatest concern about your company’s operations in China?

The Central Government duly acknowledges the potential for consumption to power future growth and create sustained national prosperity and has taken efforts to reform the economic structure accordingly. The condition that matters most for truly sustainable growth is openness.

By opening up key sectors in the economy which underpin the current growth model, reformative change can be supported by international companies with strong global solutions. This openness can invigorate the system from the ground up and deliver untapped growth potential for the whole economy.

Which aspect of China’s social and economic reforms should be improved in order to enhance the investment environment to attract more foreign companies?

Continuing to open key sectors that underpin the economy will invigorate China’s domestic market and breed the most competitive companies that can bring value to people in China and across the world.

Leveraging existing international systems encourages interoperability, cooperation and mutually beneficial development. Working from the same set of international standards also speeds technological compatibility which encourages innovation, benefitting businesses and consumers in China and across the world.

Do you think your company will develop faster in China than the previous year in terms of growth rate or market penetration?

MasterCard came to China in 1988 and a MasterCard card was the first payment card issued in China. We continue to actively partner with local banks and card issuers to bring Chinese people the best services in payment and continually drive innovation in the Chinese market.

We believe that consumers benefit from having a wider variety of choices and are happy to see that the central government aims to open the bankcard clearing market to international companies. We hope to be able to provide Chinese consumers with safe and simple ways to shop anywhere and on any device and support the development of a truly cashless society as market opening is realized.