The strategy of Citibank (China) Co Ltd ("City") in China has evolved in the business environment has changed. Since its beginnings in China in 1902, the global banking giant chose the opening of offices, branches (if allowed by the government), and not its subsidiaries. In 2001, China announced that it will join the World Trade Organization and will take a number of measures to open its banking sector. By that time, Citi realized that the pace of growth in China were very slow. Consequently, the bank revised its strategy and decided to enter the market as an embedded or indeed local, bank. Citi in July 2008 an agreement with China Unionpay ("CUP"), China's only national association of bank cards, allowing Citi, debit card to enjoy unlimited access to a vast network of CUP in China. This agreement is the latest step in the bank's strategy to establish a presence in emerging and fast-growing Chinese market through a number of strategic alliances. Why CitiUnionpay changed its strategy and began to enter such cooperative unions? What are the risks and benefits associated with the use of such cooperative strategies? "Hide
by Steven Ko, Havovi Joshi Source: University of Hong Kong, 11 pages. Publication Date: January 22, 2009. Prod. #: HKU806-PDF-ENG
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