Craig Barrett, president of US- based computer chip giant Intel, said today that China is in the position to be a major player in the coming world of E-commerce within the next few years.

"In the present economic and technological environment, China could grow into one of the largest on-line market segments in the Asia Pacific region," said Barrett at a two day seminar in China.

He noted that it is crucial for China to invest in information technology and e-business to continue its economic growth in the emerging Internet economy.

"A vibrant Internet economy across China is the foundation for ongoing economic growth into the new millennium," said Barrett, adding that information technology and e-business can act as a driver to transform businesses across all segments of the economy.

He predicted that within the next few years, there will be one billion Internet-connected PCs in the world which will generate one trillion US dollars of annual E-Commerce revenue. China now has over four million Internet-connected users.

But he warned that China is now facing a number of challenges as it moves into a Internet economy, such as a backward infrastructure.

Calling his meeting with Chinese high-level government officials today "constructive", Barrett said he is confident on China's future in opening its information technology sector. He added that his company will invest more in China.

"Looking at what China has achieved in the past five years to build its telecommunications and computing infrastructure and increasing computer literacy, we can be very optimistic about the coming decade."

Intel is the world's largest chip maker, and also a leading manufacturer of personal computers, networking and communication products. It began investing in China last year and has since put money into 10 Chinese companies and set up 12 offices across the country. (Xinhua)