Embed Size (px)
Citation preview
On Solutions to the Problems in E-Business Development in Mainland China
WANG Guo An (Andrew)Prof. of International Trade
Vice Director of International Affairs OfficeZhejiang Gongshang University, Hangzhou, P. R. China
Voice:86-136-0051-6079(cell) 86-571-28877313 Fax: 86-571-28877312 88846798
www.zjgsu.edu.cn/english/eindex.php MSN:[email protected] Skype:wangguoan2006
http://econet.zjgsu.edu.cn/andrew.wang/index2.htmE-mail: [email protected]
Abstract Although Internet-based e-business has been developing very rapidl
y in Mainland China, the following problems have hindered its development: 1. computer illiteracy and English illiteracy among elderly business decision makers; 2. incomplete understanding of the real meaning of e-business; 3. insufficient technical and legal protection; 4. no sense of security and no trust in e-business; 5. insufficient human resources in information technology; 6. underdeveloped infrastructure and financial unavailability; 7. lack of a system of Certificate Authority, a national payment system and national credit system; 8. lack of a reliable and efficient logistic system; 9. lack of a unified national technology standard to guarantee interoperability; 10. uneven interregional Internet and e-business development. But if great importance is attached to these obstacles and effective measures are taken to overcome them, the e-business in Mainland China will make more rapid progress. Otherwise, it will lag farther behind developed countries and regions and Mainland China will be in a disadvantageous position in the era of information and knowledge-based economy.
Abstract This paper at first reviews the e-business development in Mainland
China since 1995, then, analyzes the current e-business situation, reveals the problems and challenges it is confronted with and puts forward some countermeasures to overcome them. The analysis and the data quoted are primarily based on the Survey Reports On Internet Development in China released since October 1997 by China Internet Network Information Center (CNNIC), which is operated and managed by Computers Network Information Center of Chinese Academy of Science. CNNIC has conducted two surveys at regular intervals in collaboration with four other internet institutions and so far has released nine Survey Reports On Internet Development in China in succession since 1997. The paper finally concludes that the e-business future of Mainland China is the most promising undertaking on the Internet if the Chinese government on different levels acts as a strong regulator, an effective coordinator, an aggressive infrastructure builder, and an active e-business initiator and consumer.
Introduction Though the general Chinese public did not hear
the words “Internet” and “e-business” until early 1995, the Internet and e-business have experienced dramatic development and growth in the last seven years in Mainland China despite the tough and harsh e-environment in its primary stage. The obstacles to e-business development in Mainland China deserve greater attention from Chinese policy makers, officials and administrators, business leaders, and law-making bodies in order to secure sustained and continuous development of its e-business
A Review of Internet-based E-Business Development in Mainland China
Mainland China’s Access to the Internet Overseas
Mainland China’s Access to the Internet Overseas Although as early as September 20, 1987, Pr
ofessor QIAN Tian-bai, who was in charge of the Chinese Academic Network (CANET), sent the first email message from Mainland China to KARLSRUHE University in Germany, Mainland China did not really enjoy access to the Internet until April 20, 1994, when it was officially recognized as one of the Internet members in the world after China’s NCFC Project had become connected with Sprint in the USA[2].
A Review of Internet-based E-Business Development in Mainland China
The Launch of Golden Engineering Project by the State Council of P. R. China
The Launch of Golden Engineering Project by the State Council of P. R. China The word “Internet” was not known to the general public u
ntil March 12, 1993, when then Vice Premier of the State Council of P. R. China, ZHU Rong-ji, put forward the plan to undertake the Golden Engineering Project to construct China’s national public economic and information network. The Golden Engineering Project did not really begin, however, until after June 8, 1994, when the State Council issued Announcement Concerning Golden Engineering Project [ （ Golden Bridge, Golden Cards and Golden Taxes ） Document No. 18, 1994]. Then the Golden Engineering Project was in full swing[2]. Public and business-oriented applications appeared and increased with the development of an information infrastructure. More and more enterprises and individuals became acquainted with the words “Internet” and “e-business” or “e-commerce.”
A Review of Internet-based E-Business Development in Mainland China
Tough E-business Environment and Rapid
Development
Characterized aspects of the e-business environment for the three pioneers
Few people in China knew the Internet. Much educational work had to be done
Chinese enterprises or business leaders were very reluctant to spend money on Internet ventures
There were no laws or rules at all available regarding e-business in China
The Internet infrastructure was very poor and undeveloped
Greatly improved e-business environment in Mainland China since 1995
Both the Chinese governments at all levels and the ordinary Chinese people have come to realize the economic potential of the Internet
More and more Chinese people, especially the younger ones, are becoming English literate and computer literate
Greatly improved e-business environment in Mainland China since 1995
The charges for telecommunication and Internet services decreased dramatically in March and October 1999, and in 2001. As a result, the Internet services have been affordable for more people.
Since 1996, thirteen national and departmental regulations and rules regarding the Internet and e-business have been promulgated, which will certainly contribute to the creation of a fair and orderly e-business environment
Table 1: The Internet Development
in Mainland China
year computers with access to Internet
internet users domain names under “cn”
www capacity of international
outlet line
No. up No. Up No. Up No. Up No. Up
1997 0.299 0.62 4066 1500 25.1
1998 0.747 256 2.1 339 18396 452 5300 353 143 570
1999 3.5 469 8.9 424 48965 266 15153 286 351 245
2000 8.92 224 22.5 253 122099
250 265405 1752 2799 797
Table 2: Internet Users Among 100 People
USA Finland South Korea
Germany
Japan China
45 38 21 18 15.5 2.60%
Table 3: Computers Owned by Every 10 Thousand People
World High-income countries
Middle- and low-income countries
Finland USA China
63.1 375 2.41 996 976 0.16
The Problems to E-Business Development in Mainland China and their Solutions
Computer Illiteracy and English Illiteracy among
Elderly Business Decision Makers
Table 4: Internet Users in
Different Age Range
Age range
under 18
18-24 25-30 31-35 36-40 41-50 51-60 Over 60
% 15.3 36.2 16.3 12.1 8.2 7.6 3.2 1.1
18-2436. 2%25-30
16. 3%
31-3512. 1%
under 1815. 3%
41-507. 6%
51-603. 2%
over 601. 1%
36-408. 2%
Table 5: Income Differences Among Internet Users of Different ages
RMB¥ RMB¥ RMB¥ RMB¥ RMB¥ RMB¥
500 501-1000 1001-1500 501-2000 2001-2500 2501-3000
23.60% 25.30% 16.50% 8.80% 4.40% 3.40%
RMB¥ RMB¥ RMB¥ RMB¥ RMB¥ no income
3001-4000 4001-5000 5001-6000 6001-10000 Over 10000
2.30% 1.10% 0.80% 0.70% 0.80% 12.30%
The Problems to E-Business Development in Mainland China and their Solutions
Incomplete Understanding of the Real
Sense of E-business
The Problems to E-Business Development in Mainland China and their Solutions
Insufficient Technical and Legal Protection
The Problems to E-Business Development in Mainland China and their Solutions
No Sense of Security and No Trust in E-business
The Problems to E-Business Development in Mainland China and their Solutions
Insufficient Human Resources in Information
Technology (IT)
The Problems to E-Business Development in Mainland China and their Solutions
Underdeveloped Infrastructure and
Financial Unavailability
The Problems to E-Business Development in Mainland China and their Solutions
Lack of a System of Certificate Authority, a
National Payment System, and National Credit System
The Problems to E-Business Development in Mainland China and their Solutions
Lack of a Reliable and Efficient Logistic System
The Problems to E-Business Development in Mainland China and their Solutions
Lack of a Unified National Technology Standard to
Guarantee Interoperability
The Problems to E-Business Development in Mainland China and their Solutions
Uneven Interregional Internet and E-business
Development
Table 6: The Sharp Contrast in the Internet and E-Business Development Between the East and the West
Year 5 provinces & cities in the east and southeast
12 provinces, cities & regions in the
west and northwest
No. of domain names under “cn’
Jan. 2002 68.10% 8.80%
Jan. 2001 68.70% 8.50%
No. of www websites
Jan. 2002 62.70% 8.90%
Jan. 2001 64.60% 8.10%
No. of Internet users
Jan. 2002 44.00% 17.40%
Jan. 2001 43.10% 17.50%
Conclusion
Internet users in Mainland China have confidence in the future of e-business
The rapid growth of e-business in Mainland China will contribute substantially to its sustained and continued economic growth
The role Chinese government should play
