China Opens Yuan Bank Card Clearing Market for Competition

(Beijing) – China has broken the state-backed monopoly in bank card payments clearance, opening the sector to both domestic and foreign competitors.

The central bank announced June 7 a list of requirements for companies looking to provide clearing services for yuan-denominated bank card transactions, which have been only offered by state-controlled China UnionPay.

The rules fleshed out the principles that had been laid out by the State Council, the country's cabinet, in April last year regarding opening the market, after the World Trade Organization said the status quo violated its trade rules.