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Overview of Electronic Commerce in China Essay

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3.2 Overview of Electronic Commerce in China
3.2.1 Internet in China
In September 1987, the Chinese Academic Network built the first domestic Internet e-mail node and sent out the first e-mail from China. The universities were the first Chinese institutions to connect to the Internet. In 1990, a number of Chinese universities and educational institute including the Ministry of Education were connected. But substantial growth of Internet was not occurred until year 1994, when the National Computing and Networking Facility of China project opened a 64K international dedicated line to the Internet, which achieved a full-functional connection. After 1995, the adoption of the Internet by universities and government organizations accelerated. …show more content…

In July 2001, the “Key Information-oriented Program” of 10th Five-year Plan on National Economy and Social Development was promulgated and Internet development was included. By 2000 all of the provincial level government in China had a web site.
The government also invested in the Golden Projects from the early 1990s for completion by 2003 to modernize the information infrastructure. The Golden Bridge was to build networked economic information, the Golden Customs developed networked international trade information, and the Golden Card would network financial and banking information. The four major Internet backbone networks – CerNet, CstNet, ChinaNet and ChinaGbn – are all government sponsored. This strong investment by the government has led to rapid improvement of the basic infrastructure.
According to China Internet Survey Report (2008), the total number of Internet users in China had reached 182 million in 2007. In spite of delayed start, the prevalence of Internet has been increasing very quickly. China became the second largest Internet population after the United States in the world. This rapid increase of Internet users and improving of Internet access environment provide huge market potential and expectation for C2C electronic commerce in China. By the end of 2009, the number of Chinese Internet users reached 384 million, or 28.9 percent of the total population, according to the China Internet Network Information Center (CINIC). (The ration

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