PayPal Scores a Huge Coup in China
Although China's internet economy is booming now and will continue to do so over the next decade, most American tech giants won't benefit from that growth. That's because China has traditionally prevented U.S. technology companies from entering the country. When China does allow U.S. companies to invest in Chinese ones, it's usually for a minority stake, and it also usually requires the U.S. company to hand over significant technology to the Chinese subsidiary.
However, U.S. payments giant PayPal Holdings (NASDAQ: PYPL) just defied the odds, gaining approval to acquire a majority stake in a Chinese payments company, and thus enter the country's vast digital payments market. Not only was the feat impressive in and of itself, but the acquisition could also massively boost PayPal's total market opportunity. Here's how PayPal pulled it off.
PayPal scores big in China. Image source: Getty Images.
Source Fool.com
