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On Solutions to the Problems in E-Business Development in Mainland China

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 Office Zhejiang Gongshang University, Hangzhou, P. R. China Voice:86-136-0051-6079(cell) 86-571-28877313

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On Solutions to the Problems in E-Business Development in Mainland China

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  1. 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 Office Zhejiang Gongshang University, Hangzhou, P. R. China Voice:86-136-0051-6079(cell) 86-571-28877313 Fax: 86-571-28877312 88846798www.zjgsu.edu.cn/english/eindex.php MSN:wangguoanhz@hotmail.com Skype:wangguoan2006http://econet.zjgsu.edu.cn/andrew.wang/index2.htmE-mail: wangguoan@mail.zjgsu.edu.cntradelaw@hzcnc.com

  2. Abstract • AlthoughInternet-based e-business has been developing very rapidly 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.

  3. 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.

  4. 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

  5. A Review of Internet-based E-Business Development in Mainland China Mainland China’s Access to the Internet Overseas

  6. Mainland China’s Access to the Internet Overseas • Although as early as September 20, 1987, Professor 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].

  7. 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

  8. The Launch of Golden Engineering Project by the State Council of P. R. China • The word “Internet” was not known to the general public until 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 GoldenEngineering 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.”

  9. A Review of Internet-based E-Business Development in Mainland China Tough E-business Environment and Rapid Development

  10. 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

  11. 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

  12. 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

  13. Table 1: The Internet Development in Mainland China

  14. Table 2:Internet Users Among 100 People

  15. Table 3:Computers Owned by Every 10 Thousand People

  16. The Problems to E-Business Development in Mainland China and their Solutions Computer Illiteracy and English Illiteracy among Elderly Business Decision Makers

  17. Table 4: Internet Users in Different Age Range

  18. Table 5: Income Differences Among Internet Users of Different ages

  19. The Problems to E-Business Development in Mainland China and their Solutions Incomplete Understanding of the Real Sense of E-business

  20. The Problems to E-Business Development in Mainland China and their Solutions Insufficient Technical and Legal Protection

  21. The Problems to E-Business Development in Mainland China and their Solutions No Sense of Security and No Trust in E-business

  22. The Problems to E-Business Development in Mainland China and their Solutions Insufficient Human Resources in Information Technology (IT)

  23. The Problems to E-Business Development in Mainland China and their Solutions Underdeveloped Infrastructure and Financial Unavailability

  24. 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

  25. The Problems to E-Business Development in Mainland China and their Solutions Lack of a Reliable and Efficient Logistic System

  26. The Problems to E-Business Development in Mainland China and their Solutions Lack of a Unified National Technology Standard to Guarantee Interoperability

  27. The Problems to E-Business Development in Mainland China and their Solutions Uneven Interregional Internet and E-business Development

  28. Table 6: The Sharp Contrast in the Internet and E-Business Development Between the East and the West

  29. 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

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