Yahoo Bent on Expanding China Market Share

Though admitting that China's Internet sector is not faring well because of a capital drain after the NASDAQ crash in March, senior managers at Yahoo, the world's leading Internet company, still believe that the bottom line has not changed.

Yahoo will continue to expand in the China market by enriching news content and search engines and providing technology services while looking for business co-operation with Chinese net firms, the managers said.

But they told China Daily Sunday, that unclear policies from the Chinese Government concerning foreign involvement in Internet business will hinder the sector's long-term growth.

"The tactics of burning money has pushed many Net firms into dire straits and in the next six months, more merger and acquisitions stories will be heard," said Savio Chow, vice-president and managing director of Yahoo's Asia operation.

But, Chow said, the market's potential remains unchanged.

"With China's on-line population continuing to explode and the market shaped in order after the correction, it will be good for business," he said.

The US-based leading Internet content provider has recently teamed up with Beijing Founder Electronics Co Ltd, a leading information products maker in China to tap the sprouting on-line advertisement market.

They have set up a joint venture, Founder Ad Targeting Co Ltd, with Founder undertaking Yahoo's online advertising business on the Chinese mainland, while Yahoo has authorized Founder to use its unique Ad Server software which produces tailor-made on-line ad solutions.

"We will expand business into other Internet services like e-marketing, on-line technology applications related to e-business in the future," he said.

Yahoo opened a Chinese-edition website last September, its 20th in the world market. The website has become one of the most frequented websites in China.

Chow said the firm expects a twofold to threefold revenue growth on a yearly basis in China.

Chow hopes to team up with more Chinese Internet firms to develop Web solutions and help increase public knowledge of the Internet in China.

He said Yahoo is considering co-operating with Chinese academic players on some programmes to spread use of the Internet. (China Daily)

Private Businesses Need Equality

Privately owned enterprises should be treated equally and given more developing opportunities, urged Jing Shuping, chairman of the All-China Federation of Industry and Commerce.

"Although the Constitution says clearly that non-State-owned enterprises are important components for the country's economy, these firms still face unequal treatment and barriers in many areas," he said at a press conference last week for the First China Non-State-Owned Enterprises Fair.

The fair is to be held in Southwest China's Yunnan Province December 8-12.

Jing's federation is a social organization linking government and private enterprises.

Influenced by decades of planned economy, State-owned-enterprises enjoy priority treatment in the country. While private enterprises for a long time played supplementary role in the economy.

In recent years, private enterprises have reported rapid growth with elastic operation systems and quick reaction to the market.

They have become shining stars, especially in the Internet-based economy, said Jing.

According to Bao Yujun, vice-chairman of the federation, the country has 31 million single-owner private companies with a total of 60 million employees. These are small, family-based firms with less than seven employees each.

While private enterprises with more than eight employees reached 1.5 million, employing a total of 20 million people.

Private companies of all sizes are major components of the non-State-owned economy with registered capital of more than 2,100 billion yuan (US$253.6 billion), they contributed 8.1 per cent of the country's total tax revenues, according to Bao.

These companies are gradually stepping out of the small family circle.

According to Bao, around 50 per cent of private companies have established limited companies and are expected to go public in the future.

He said they still have a long way to go for equal treatment with State-owned-enterprises.

"There are still stumbling blocks to market entry, capital absorbing and employment," he said.

Bao said more capital and high-level personnel should flow to private firms.

The majority of private enterprises are in the southeastern coastal areas, he said.

The First China Non-State-Owned Enterprises Fair aims to tap the potential of the western areas including Yunnan, said Bao.

"The fair will be a concentrated display for more than 20-year development of non-State-owned enterprises," said Li Jiating, governor of Yunnan Province.

Compared with Guangdong Province, which has more than 180,000 private enterprises, Yunnan has only 40,000 firms that are not owned by the State.

To attract more private enterprises, Li guarantees fair play for all competitors.

"Non-State-owned enterprises will be our new hope when many of the State-owned enterprises are struggling for their own survival," he said.

Li said 900 domestic firms and 100 foreign firms are scheduled to attend the fair. Trade discussions, consultation and border trade inspection tours will be organized during the fair.

The State Economic and Trade Commission, the All-China Federation of Industry and Commerce, the Ministry of Education, the Ministry of Science and Technology, the Ministry of Foreign Trade and Economic Co-operation and the Yunnan provincial government will jointly host the fair. (Chinadaily)



People's Daily Online --- http://www.peopledaily.com.cn/english/