E-commerce is set to explode in China. Industry observers say by the end of this year, the country's volume of online shopping will reach RMB 800 million (US$96.7 mln) annually, while by 2002, this figure will soar to RMB 10 billion (US$1.2 bln), the March 8 Zhongguo Shang Bao (Business Daily) reported.

According to the newspaper, China had only 100 online stores at the beginning of last year, it has more than 600 today and is adding two new online stores a day.

E-commerce in China also grew quickly last year, as its volume more than doubled to RMB 200 mln (US$24.2 mln) from 1998. According to the newspaper, 1999 is when e-commerce in China transformed itself from mere talk to reality.

Last year, Internet commerce spread quickly from China's coastal regions to its interior and from big cities to small and medium-sized ones.

The Chinese Government also clearly strengthened its support and its efforts to coordinate this growth of e-commerce, the newspaper reported.

Now, the newspaper noted, many Chinese companies have voluntarily established and introduced e-commerce rules and regulations, while sectors such as financial systems, tax-collection systems, securities, pharmaceuticals and construction have begun experimenting with e-commerce.

According to the newspaper, most Chinese Internet shoppers either pay online or by cash on delivery.