E-Commerce In China Liang Chen & Xu Li. Definition of E-Commerce 1. Too Generalized Definition 2....
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Transcript of E-Commerce In China Liang Chen & Xu Li. Definition of E-Commerce 1. Too Generalized Definition 2....
E-Commerce In ChinaE-Commerce In China
Liang Chen & Xu LiLiang Chen & Xu Li
Definition of E-Commerce1. Too Generalized Definition
2. Too Restrictive Definition
3. Definition in between
Reasons of E-Commerce Development
1. Development of IT Industry in China
2. China’s Entry into WTO
IT Industry In China
20% GDP in 1998
Fuel current economic growth
Set solid foundation for development of E-C
China’s WTO Entry
1. Its commitment to liberalization in the telecommunication and financial service sectors
2. Open market to foreign investment
3. Create competitive environment
Two Models
B2B(earlier development)
B2C(wide range of goods)
Two Aspects
1. Avoid the overly aggressive investment
2. Be prepared to follow the wave
Development Prerequisites Online Population (103 million by 2005 up
from 87m in 2003)
Estimated 7m credit card holders in China
The population of PC users
Information Structure (ISP cost & service quality)
Development in E-commerce1. In March 6, 1998, first online sale
2. In the early 1990s, adoption of EDI
3. Golden Bridge & Golden Card Project
4. (Infant Stage) 1999-2001
5. Robust development in 2005
Statistics
1. Value of online transaction
350 bn in 2004 to 553 bn in 2005
2. 95% of the market was B2B
3. Up 37.1% year-on-year
4. Number of items online exceeds 60m
Limitations
E-commerce in its infancy stage Transactions representing 0.87% of GDP
Constraints
High internet access cost Lack of a nationwide credit card system Slow and uncertainty delivery Lax network security Government interference
Low speed and high cost online access
Service charges for renting frequency bands of sufficient width for websites high
Access charges high: 10% of monthly income
Payment online
The share of online payments remaining below 50%
Banking services expensive and inefficient Banks imposing restrictions on e-payments Average fees equal to 5%--10% of each
credit-card transaction
Problems in the realm of supply and delivery system
Traditional labor-intensive delivery system Weak logistic system
Online security
Companies’ worrying about the e-business system from hackers
Commercial credibility: counterfeit and low-quality products
Figures: 20%, 40%, 80%
Government interference
Censorship Strict control of internet
Government’s Role1. Provide more efficient high-
level guidance
2. Create a better environment
3. Issue appropriate laws and regulations
Resolutions of Chinese Government
1. inter-departmental responsibility coordination should be emphasized
2. Strengthen the capital support policy
3. Relax constraints4. Continue its reform of
intellectual property right
References
China's E-Commerce Development,Jiacheng HE,perspectives, Vol. 2, No. 2
E-Commerce In China,John WONG & NAH Seok Ling Is E-Commerce ready for China? By Keith Regan,E-Commerce Times , China E-Commerce 2000 conference http://www.ultrachina http://www.scmp.com(South china Morning Post) http://www.ecommercetimes.com www.sina.com www.yahoo.com www.alibaba.com
Thank you
谢谢!