China's Traditional Industries Urged to Embrace E-commerce

Internet entrepreneurs have urged Chinese traditional industries to start electronic commerce as soon as possible to keep up with the burgeoning electronic economy. "Many people believe that the ".com" economy is a bubble economy which they need not concern themselves with," said Wang Juntao, president of the 8848.com website. "My view is that without starting electronic commerce, traditional businesses will be not be able to survive."

Wang, speaking at the World Economic Forum's "China Business Summit 2000", pointed out that Chinese traditional businesses are still not psychologically ready for the advent of e-commerce. After trade barriers disappear along with China's entry into WTO, e-commerce is likely to emerge as the new trade barrier for those who have not already converted. Richard Li, chairman of Hong Kong Pacific Century Group, said that all companies should think of e-commerce as a way to readjust to the new economy. Business leaders at the conference reached a consensus that information technology not only affects business operations and company-to-company trade, but can also promote new industries. Charles Zhao Chaoyang, president of Sohu company, many traditional businesses are closely watching e-commerce develop in China because they are yet to be exposed to fierce competition. In the long run, Chinese companies will realize that foreign companies will be their major competitors. In this respect, traditional industries must strive towards developing e-commerce to raise their competitiveness.

Wang Juntao said that many multinationals choose e-commerce as one of the prerequisites when looking for local partners in China. The reason why the 8848 website's volume of trade has skyrocketed in the eight months of operation is because many multinationals have paired up with it.

He said that e-commerce is not just about selling things on the net. The most crucial thing for companies is to realize the huge potential of e-commerce. Chinese electric appliance companies such as Kelon, are now at the forefront of e-commerce development, Wang added.



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