PayPal, which belongs to eBay, is going to set up “a global e-commerce hub” in Chongqing, China, Bloomberg reports. The centre, which is set up in partnership with the local government, will offer services like foreign exchange settlement, telesales, training and verification for PayPal‘s global customer — and perhaps give it a shot at the huge Chinese market.
Of course, China hasn’t always been kind to eBay. The company entered China in 2002, bombastically vowing to dominate the market, and was instead thoroughly beaten by local juggernaut Taobao, and shut down its Chinese site in 2006. US tech companies are often confounded by local markets in Asia, especially China, and often end up disappointed.
This seems like a smarter play for the market. The company is partnering with the local government, offering jobs and investment, and perhaps get more merchants. Its foreign exchange offering solves a real problem because of foreign exchange controls in China.
Smart stuff. A story to watch.
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