The future of e-commerce in China

Ernst, Dieter
He, Jiacheng
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Honolulu: East-West Center
China has the resources, the means, and the motivation to be a central player in the global e-commerce industry but is lagging far behind other countries in terms of market size and scope. Particularly significant is the dearth of business-to-business transactions, which have been growing by leaps and bounds elsewhere. The key reasons for China's e-commerce problems include an insufficient grasp by entrepreneurs of the complexity and dynamics of e-business, obstacles to web access and e-banking, inadequate supply and delivery systems, and security concerns. It is therefore imperative that the Chinese government provide high-level policy coordination and support for e-commerce development, and e-commerce must be a central element in future development strategies. Clear government policies and regulations are needed to address a host of emerging e-commerce issues, especially those surrounding commercial contracts, taxation, and new modes of foreign investment. Finally, government must institute training programs at national and local levels to provide computer-related education.
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