On solutions to the problems in e-business development in Mainland China

Although Internet-based e-business has been developing very rapidly in Mainland China in the last seven years, 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. 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 from October 1997 to January 15, 2002 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 nine 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.