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

Development of Internet and E-commerce is not only an advanced technology that Chinese enterprises can use in internal reform, it also can promote the nation's economic restructuring, becoming a decisive factor behind China's economic competitiveness in the 21st century.

The remark was made by famous Chinese economist Pan Yunhe at the "The International Symposium on Government and E-commerce Development" held recently in Ningbo, this port city of east China's Zhejiang Province.

Chinese and overseas experts and entrepreneurs attending the symposium agreed that as a developing country, China is experiencing economic restructuring. It can make full use of E-commerce to improve people's living standard and promote efficiency of information technology and resources arrangement.

Since China introduced e-commerce in 1993, the sector has witnessed remarkable development. In 1996, China had 100,000 Internet users; the figure skyrocketed to 20 million in 2000, ranking third-highest in the world.

Pan, also an academician of the China Academy of Engineering and president of the prestigious Zhejiang University, said that the increasing population of Internet users and China's improved economic environment will create a large potential market and bright future for China's E-commerce development.

According to Pan, the majority of the Internet users in China are young, and the next generation will be more familiar with Internet and computer use. They are going to play an pillar role in developing E-commerce.

By the end of last year, the country had over 100,000 Chinese domain names and 30,000 websites, including 1,200 websites for consumption.

Statistics show that the Commodity Fair at China International E-commerce Network, which opened in 1998, received nearly 50,000 visitors from 102 countries and regions worldwide during the first four months.

The fair has become the largest market for Chinese commodity exchange on Internet.

Yao Yong, president of the American E-commerce Technology Inc., said that volume of on-line trading in the United States is to reach 1,300 billion US dollars in the next five years, two times higher than the present figure. Many developed countries including Britain, Germany, Japan and France will enter an era of fast booming E-commerce.

The E-commerce value in the United States accounts for more than 10 percent of the country's total trade volume, but in China, the sector's value only makes up one percent of the country's Gross Domestic Product (GDP).

China should keep up with the new round E-commerce development tide and should not lose the opportunity, Yao noted.

In the new century, the developments of on-line household electronic appliances such as refrigerators, microwave ovens, along with on-line shopping and trade, and intelligent-controlled apartments and highways will closely link people's daily life with Internet and E-commerce.

At the same time, Chinese high-tech enterprises and websites are facing opportunities as well as challenges in the coming E- commerce period, said Song Ruhua, president of the Sichuan-based high-tech corporation Toupu Group.

Song, also the chief executive officer (CEO) of the web company, noted that chain business is the ideal mode of operation.

The chain operation style provides a unified and open technology platform, trade resources and service support for medium and small-sized websites.

The web company, which was set up in 2000, has so far attracted 587 domestic and 130 overseas websites, he said, adding that a model for an E-commerce trade union is shaping up.

To further promote E-commerce development in China, related departments are framing laws and regulations to govern the sector, Pan Yunhe said.

A Regulation on Management of Internet information service was issued recently to standardize the development of E-commerce. At the same time, the People's Bank of China and 11 commercial banks jointly set up a financial authentication system to ensure safe online trade and payment.

In the coming decade, China will carry out a series of major projects to provide more favorable policies for the sector and improve E-commerce infrastructure, market development and professional training.

In Ningbo City, more than 3,000 local enterprises have set up websites, reporting a total on-line trade volume of 50 billion yuan (about six billion U.S. dollars).

"China's E-commerce will mature in the 21st century and as a high-tech platform, it will boost the economy and benefit people's life," Pan said.






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