Home>>Business
Last updated at: (Beijing Time) Thursday, November 22, 2001

UNCTAD Report: E-Commerce in China Promising

With China's entry into the World Trade Organization, the future looks rosy for the nation's e-commerce, says a report on e-commerce released Wednesday by the United Nations Conference on Trade and Development.


PRINT IT DISCUSS IT CHINESE SEND TO FRIENDS


UNCTAD issued report on China's promising e-commerce

With China's entry into the World Trade Organization (WTO), the future looks rosy for the nation's e-commerce, says a report on e-commerce released Wednesday by a UN organization.

The E-Commerce and Development Report 2001 issued by the United Nations Conference on Trade and Development(UNCTAD), devotes an entire chapter to the development of e-commerce in China, and China is the only nation to get such treatment.

"It is known to all that China has made remarkable achievements in this regard and its achievement, more or less, can be beneficial to other developing countries," said Li Zhongzhou, an official with the UNCTAD, who was responsible for release of the report in Beijing.

"Maybe that's why the report gave such treatment to China," Li said.

  • Bright future to be brought by China's WTO entry
    • The report says that given China's accession to the WTO, its commitments to liberalization in the telecommunication and financial services sectors "will spur e-commerce development."

    "China's entry into the WTO ...will open the market for foreign investment and create a competitive environment that should bring down the access cost and improve service quality. It will also provide Chinese enterprises with opportunities for cooperation, leading to faster adoption of e-commerce practice," it says.

  • China's achievements in the information industry
    • The report elaborated on China's achievements in the information industry.

    China boasted US$9.33 billion in e-commerce transactions last year, and between 1997 and 2000, the number of Chinese Internet users doubled every six months, cites the report.

    Some of the latest data offered in the report are actually now "out of date," said Li, who cited the example that he heard Tuesday that the number of mobile phone users in China hit 136 million by the end of October of this year.

    In value-added telecommunications services, including the Internet and e-commerce, China's big market is "attractive and promising," says the report, noting that the role of the private sector will also grow, allowing the country to become "a key player in e-commerce, matching its success in international trade."

  • Limitations
    • However, the report points out that the overall reach of both Internet and mobile phone use is still relatively small and "e-commerce is still in its infancy" with transactions representing only 0.87 percent of GDP.

    The report lists a number of constraints hindering the further growth of e-commerce which are shared by all developing countries.

    These limitations include high Internet access cost, restrictions on Internet services, lack of a nationwide credit card system, slow and uncertain delivery, lax network security, and lack of awareness of the benefits of e-commerce.





    United Nations Conference on Trade and Development
    Established in 1964 as a permanent intergovernmental body, UNCTAD is the principal organ of the United Nations General Assembly dealing with trade, investment and development issues.

    Main Goals

    Maximize the trade, investment and development opportunities of developing countries and assist them in their efforts to integrate into the world economy on an equitable basis



    		    Advanced

    More Chinese Internet Users Buy Online

    E-Commerce: New Driving Force for China's Economy

    E-commerce Decisive Factor for China's Future Economic Heft