UnionPay

Industry executives and lawyers say the companies are wary that overt support will upset UnionPay, which is their partner and sometime regulator in China.

U.S. Card Companies Shrug at China's Monopoly Dinny McMahon 2011

China UnionPay, also known as UnionPay, is China's only domestic electronic payment network, with 1.8 billion cards issued.

China Post Online - Taiwan , News , Taiwan newspaper 2010

In September, less than 48 hours before the U.S. Trade Representative first launched the WTO case against China over UnionPay's monopoly, MasterCard issued a two-paragraph statement announcing a memorandum of understanding with UnionPay to "explore business cooperation."

U.S. Card Companies Shrug at China's Monopoly Dinny McMahon 2011

Reuters UnionPay, controlled by China's central bank, has managed to dominate the business of processing local-currency credit-card and debit-card payments in China, and has been expanding internationally into markets foreign companies dominate.

U.S. Card Companies Shrug at China's Monopoly Dinny McMahon 2011

UnionPay, which the government formed in 2002, is closely tied to the People's Bank of China from which it drew some of its top executives.

U.S. Card Companies Shrug at China's Monopoly Dinny McMahon 2011

UnionPay didn't respond to repeated requests for comment.

U.S. Card Companies Shrug at China's Monopoly Dinny McMahon 2011

The U.S. lawsuit targets China UnionPay Co., a nine-year-old company controlled by China's central bank that has managed to dominate the business of processing local-currency credit-card and debit-card payments in China, despite promises that China would open it up as part of its entry into the WTO.

U.S. Card Companies Shrug at China's Monopoly Dinny McMahon 2011

Rival Visa—onetime ally of UnionPay that has more recently butted heads with the company—has been unable since last year to do any new deals in China in the one sliver of the business in which foreigners can access Chinese consumers: cards issued by Chinese banks that can be used overseas as well as in China.

U.S. Card Companies Shrug at China's Monopoly Dinny McMahon 2011

UnionPay's cards are now accepted in more than 100 countries around the world.

U.S. Card Companies Shrug at China's Monopoly Dinny McMahon 2011

People familiar with the situation say they believe it is punishment for Visa's spat with UnionPay.

U.S. Card Companies Shrug at China's Monopoly Dinny McMahon 2011