Thomas, Simona

E-Commerce / E-Business in the Peoplešs Republic of China

Abstract

E-commerce has expanded exponentially over the past five years and is widely expected to continue its rapid development. As many observers assume, Internet use will have a positive effect on China's overall economic performance. Contrary to this optimistic view, any analysis of the effects of e-commerce in China will have to focus on the following questions:
- What are the major driving forces for e-commerce in China? - Who are the economic beneficiaries of the technical innovation and Internet revolution?
- Are the opportunities of e-commerce in China fully exploited? - What are the profound impacts on individual sectors of the economy (growth, productivity, investment)?
- How are governance aspects developing regarding to e.g. consumer protection, fulfilment, delivery, security, intellectual property, taxes, costs etc.?
- What are the expected impacts esp. for foreign companies active in the PRC?

Based on a field research conducted in March 2002, the paper analyses the potential contribution of the Internet and the presumed effects of its commercial application within the Peoplešs Republic of China. The interviews were with two main groups: foreign companies from different industries, esp. information technology (systems and applications), automotive, transportation, interactive advertising, law consultancy as well as intermediate protagonists, esp. the Chamber of Commerce and an e-commerce lobby group. The interviews focused on different aspects of e-commerce in the PRC as detailed below:
- General questions relating to concepts
- Performance of foreign companies in the field of e-commerce in the PRC
- Are there new business models emerging?
- Major trends, future plans and future outlook
- Legal/ governmental framework for e-commerce in China
- Hindrances and barriers to development
The paper tries to answer these questions from the perspective of foreign companies in China, esp. IT, Telecommunication, Brick-and-Mortar, and their specific role of Chinašs E-Commerce development. Based on this analysis the paper concludes by offering competing approaches to a deepened understanding of ChinaŒs performance in the global information economy & society.