American Express and China International Travel Services today announced the creation of a corporate travel joint venture in the People's Republic of China.
CITS American Express Travel Services Ltd. will provide corporate travel management services to China-based companies, as well as to clients from all other countries who are traveling to China.
By April, more than 60 new employees will be added to CITS American Express Travel Services Ltd. in 18 offices throughout the country. Zhang Jianhua, an executive at CITS, will be chairman of the new company, which will be majority-owned by its Chinese partners.
The Chinese joint venture comes on the heels of American Express' recent expansions in Asia, including its 2001 partnership with Nippon Travel in Japan and partnerships in Hong Kong and Malaysia in 1999 and 2000.
"We believe there is a $4.2 billion corporate travel market in China," said American Express vice chairman John Linen. "There has been steady growth there over the past 20 years, but now we expect two things to rocket booster that growth: China's recent move into the World Trade Organization and the Olympic games, which will be held in China in 2008."
American Express and CITS have had a business relationship since 1980, but only recently has an official joint venture become possible.