China Eyes the Prize in Global Fintech

Published on
May 7th, 2018
26 minutes

China Eyes the Prize in Global Fintech

The Expert View ·
Featuring Paul Schulte

Published on: May 7th, 2018 • Duration: 26 minutes

Paul Schulte, founder of Schulte Research, explains why Chinese tech companies, especially fintech firms, have stealthily gained advantages over their largest US rivals. Developing their models from scratch, Chinese businesses are leapfrogging the West, where finance is encumbered by old-school cartels and tech is contending with a consumer backlash and regulatory oversight. Filmed on April 24, 2018 in Hong Kong.


  • GO
    Gary O.
    12 May 2018 @ 05:30
    Super clear vision of the not so clear future. Thank you.
  • SR
    Steve R.
    10 May 2018 @ 05:41
    China's gains in the fintech and wider tech space have come as a direct result of IP theft from US tech companies, pure and simple. The chinese government 'plants' people into US organisations with the sole purpose of stealing trade secrets - its endemic, but the US is too blind and slow to realise it, let alone take any action to prevent it. Do you really and honestly think you could get a chinese company to hand over its IP in return for access to US markets? Can you imagine the uproar that could cause! It would be an international incident! China has grown on the back of massive protectionist policies. This could actually turn out to be the achilles heel in their whole strategy.
  • JL
    Justin L.
    9 May 2018 @ 21:00
    Lost me at Kabbage as his favorite US fintech name. Interesting views otherwise on the Chinese fintechs. Enjoyed this ep.
  • RE
    Richard E. | Contributor
    9 May 2018 @ 19:55
    He seems to ignore a couple of things to me: 1. There are a number of the same issues being done in the US, just at smaller start-ups and not the big state-directed companies 2. We have a far different view of privacy in the US than China 3. He seems to think it is okay for China to pull back and be insular but not for the US to do the same
  • JM
    James M.
    9 May 2018 @ 18:28
    Very refreshing!
  • SZ
    SALEH Z.
    9 May 2018 @ 11:01
    Was going great right up to the point the CIA and FBI are funding US tech companies ...... hahahah
  • CC
    Chris C.
    9 May 2018 @ 03:26
    Some good points Paul, like Chinas growing tech sector should be good for US companies and force them to compete. But lets not forget the 800 LB Gorilla in the room! Chinas a Communist country! Citizens and private entities have rights given and taken by the Communist Government! And there's no recourse. But also true, US crony capitalism makes it difficult for little guys to compete AND our regulatory system is a pretty corrupt joke. See the FDA if you want low hanging fruit proof. And consolidating every part of your life, medical, financial, how you treat your mother, your social media behavior (social media credit score), I'll pass! For now Chinas growing technologically faster (as you say) because its all new and regulation hasn't caught up or interfered. But crappy human behavior (especially by Governments) is universal whether you're Chinese, Indian or American. It will catch up.
  • RK
    Robert K.
    8 May 2018 @ 00:15
    The momentum China has enjoyed in the past decade was very much stimulated by the western world. Let's see if they can hop on the train and instead of stealing intellectual property they have the environment to breed their own. A bit skeptical on that since the recent political changes are backwards - or the interviewed thinks the comrades can plan for innovation in their politburo? Keep it real.
    • DS
      David S.
      9 May 2018 @ 00:57
      It will need a new mind set, but they are bright and can focus on what they feel is important. We all have our problems. DLS
  • JM
    John M.
    8 May 2018 @ 05:56
    My key takeaway from his presentation is that the USA is falling behind China in a number of areas and this may be due in part to USA leadership which prefers to invest trillions of dollars blowing stuff up in the middle east rather than revitalizing its economy, investing in their people & creating a state of the art infrastructure. On a positive note, at least the US military is happy!
    • DS
      David S.
      9 May 2018 @ 00:53
      I agree with you except the military being happy. They are American too. DLS
  • FB
    Floyd B.
    9 May 2018 @ 00:03
    One of the worst presentations I have seen on real Vision, completely one sided to the point that it becomes unbelievable. He almost completely ignores/avoids any discussion of the impact of the government on all aspects of the economy ,business and daily life in China. This country just"elected" their president/dictator for life He says the financial systems has an "astonishing level of flexibility",all the banks are state controlled as is the entire financial system.He says there is no mistrust of the financial system, that must be why there are the draconian capital controls. He says there haven't been any data breaches in China, we wouldn't know if there were and on and on! What ever this guy is selling buyer beware!!
  • FS
    Frank S.
    8 May 2018 @ 17:29
    Refreshingly different perspective
  • DD
    Damian D.
    8 May 2018 @ 09:51
    True, China is a long term strategic thinker, but to criticise USA information gathering as being passed directly to government agencies and then defend cradle to grave information gathering in a totalitarian regime is hypocritical. Naturally information gathering techs will do better in an environment that lacks consumer protectionism, As far as the FBI having a back door into Apple phones, Apple was taken to court by the FBI because it refused to hack a phone for them, when one makes such statements one losses credibility. The Chinese Government can simply order an information gathering concern to hand over all their data, and it will be done, no courts no due process. FinTechs are doing well in China, but can they branch out to the West, I am not sure I would want to support and/or profit from big brother, neither would I short sell the US
  • ah
    ahmed h.
    8 May 2018 @ 05:49
    he s great -- loved this .. what ive noticed is that anyone who comes out n spends anytime in the far east has views about asia china v similar to these.. a lot of times people comment on china / asia without having flown the miles.. so before dismissing anything orient .. come out here .. live it .. u ll grow to love it
    • ah
      ahmed h.
      8 May 2018 @ 05:51
      think we shud get him to talk to peter zeihan.. cud really open his eyes
  • SL
    Steven L.
    8 May 2018 @ 01:09
    The editing of this piece made it difficult to follow at times. Very jarring! I agree that China will easily outpace the US until the US dramatically changes. The required changes have not even begun in the US.
  • CC
    Christopher C.
    7 May 2018 @ 11:55
    From a global, comparative perspective, looking in at the West, Paul eloquently makes the case that the modern day cartels/guilds that are made up of bankers, title companies, finance companies, doctors, drug companies, insurance companies, food producers, auto companies (excepting Tesla), energy companies etc, and their network of lobbyist and politicians which look out for their minder's interests first, are being adeptly challenged by the new up and comers. I think there is a fair bit of muscle memory/institutionalized group think that views these challengers as socialist/communist rubes from backwater locales to be perhaps exploited, but in no way taken as a serious threat. On top of this is the need for each group to continue maintaining its hard won choke hold on the existing system because each guilds own survival is paramount in its eyes. Reminds me a bit about the parable of the scorpion and the frog. Turbulence ahead would seem to be a safe bet. Also interesting that the existing system in the west has allowed inane frauds to persist that pervert the truth. The inverted food pyramid perverted by big agra, the sugar lobby as a whole, the questionable GMO powerhouse, the pill pushing nature of big pharma, the failing primary and secondary education system, the infiltration of the university system, and many HR departments (Google/James Damore) by identity politics, the country as a whole who reluctantly chose the new lies of the current administration over the establishment lies being offered, our made up numbers we use to steer out economy (Unemployment, job growth, cpi ("Chained inflation"), attributing national macro weakness to one time weather events, etc. Light from the outside is the only thing that can fully illuminate these things in their proper perspective. The slow death of the talking heads and rise of the likes of Real Vision offer us both a look at the true carnage around us, and perhaps hope that we can move forward in a more honest, responsible, and thus sustainable way. Fourth turning indeed.
    • IH
      Iain H.
      7 May 2018 @ 16:16
      I totally agree. Would change a thing you have said here.
    • PD
      Peter D.
      8 May 2018 @ 00:20
      paragraph [par-uh-graf, -grahf] noun 1. a distinct portion of written or printed matter dealing with a particular idea, usually beginning with an indentation on a new line.
  • JV
    James V.
    7 May 2018 @ 20:28
    Fascinating presentation! It would be great if you could post a sample of Paul's research on Think Tank.
  • AB
    Aaron B.
    7 May 2018 @ 12:53
    Chinese tech companies are the most ethical?
    • MS
      Martin S.
      7 May 2018 @ 20:26
      Ummm ... are U.S. companies the most ethical?
  • SG
    Sophie G.
    7 May 2018 @ 14:04
    I'm a Brit living in Shanghai and Paul's assessment of society, technological development and Sino/US relations is spot-on. The Chinese are pragmatic and forward looking. Digital currency from Tencent (WeChat) & Alibaba is the standard, cash is rarely seen in shops/restaurants. Fintech is the tip of the ice berg.
  • PU
    Peter U.
    7 May 2018 @ 13:57
    This video appears to be poorly edited. Lots of choppy transitions. . . . speech is choppy due to poor editing.