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Due to the high amounts of local debt and corruption many banks were afraid of having the banking in China opened up to large foreign companies. Chinese people were accustomed to what they had and fear was all they had left.
The Chinese government had also restricted Citigroup from providing credit cards...
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There was a fear that offering credit cards to China's residents would cause unmanageable inflation. If Citigroup does decided to offer credit cards one day, there is a great possibility that they will lose an abundant amount of money. Local people are not used to using credit, and therefore, may take advantage of the product and the bank that offers it...
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