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E-commerce industry china
E-commerce industry china
Internet laws in china
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Barriers to Foreign Investment in the Chinese Internet Industry
Summary: Developing an Internet business in China is not easy, even though the country has the largest Internet user population among all countries in the Asia-Pacific region. Chinese laws make foreign investment difficult, and the country -- quite unlike the United States -- has strict legal controls on information and distribution and poor enforcement of intellectual property laws. This article explains the barriers facing high-tech companies in China.
Introduction
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China has the largest population and one of the fastest-growing economies in the world. If only one percent of its population participates in the New Economy, China will provide a market of more than 13 million potential customers for Internet businesses around the world.
Today, China has approximately 22.5 million Internet users, according to a survey released by the China Internet Network Information Center. Although nongovernmental organizations and foreign agencies have questioned the accuracy of these figures, none have disputed that China has the largest Internet user population among all countries in the Asia-Pacific region.
While the Chinese market is attractive, developing Internet business in China is not easy and can be frustrating at times. Due to the different political, social, economic and cultural conditions, foreign investors face significant barriers to establishing Internet businesses in China. Disillusioned from their idealism and tired of the bureaucratic red tape and regulatory hassles involved in investing in China, many investors have exited the Chinese market.
Foreign Investment Law
The current Chinese laws and regulations are unclear as to whether foreign investment in the Internet industry would be allowed. Experts generally maintain that Chinese telecommunications laws forbid foreign participation in the Internet sector. Under those regulations, foreign investment in the telecommunications sector is heavily restricted. Telecommunications services are limited to local providers, such as China Netcom, China Telecom, China Unicom and JiTong Corporation.
With its imminent accession to the World Trade Organization ("WTO"), China is expected to relax its foreign ownership rules. In November 1999, China signed a bilateral accession protocol with the United States, laying out the terms for China's accession to the WTO. Under this agreement, China will allow 30% foreign ownership of telecommunications firms upon accession to the WTO, 49% after the first year, and 50% after the second year.
On December 14, 2006, Cisco invested $50 million in China communications services, one of the biggest overseas strategic investors of China communications services. After becoming a shareholder of China communications services, Cisco and China communications services managed telecommunications services and new network solutions for China enterprises including IP infrastructure, digital video, 3G platform and its application. In November 2006, Cisco (China) Financing Lease Co. Ltd was established in Beijing and became the first network equipment company of China to provide long-term financing lease finance solutions for customers (Liang, R. 2013).
The article also give snap shot of the foreign companies who misjudge the Chinese culture, competition, size the market, and some other factors, have been badly affected by investing in china.
The Great Firewall of China censors innumerable amounts of content for an assortment of reasons. The most common objective is to silence criticism of the Chinese government and to prevent ideologies contrary to Chinese Communist Party (CCP) policies from gaining momentum. The Chinese government goes beyond just blocking individual websites however, using “techniques to scan URLs and web page content for blacklisted keywords like ‘Tiananmen’ and block such traffic” (Hoffman). Due to this, they most often target social media platforms, virtual commercial exchange markets, and information-based registers. To compensate they have developed their own social networking sites, search engines, and directories, completely controlled by the Chinese government, allowing them the abi...
E-commerce in China is complex, unlike any other country, and in a constant state of flux. The sheer size of the industry and the sheer number of Chinese consumers - which is still steadily growing as you read this report - make it extremely hard to navigate this complex industry and even harder to find a winning strategy. However, with careful research and acute business sense, one will be able to capitalise on the unique dynamics on this industry and make investments that will make a good return in the long run. I hope that this report has helped to give you some key insights into the industry and improve on your investment process.
With a population of 1.357 billion (2013)3, China is the most populated country in the world. Along with the huge population comes a market that is unmatched by any other country of the world. Both domestic companies and foreign companies want to tap into this large market that just recently embraced capitalism and entered into the World Trade Organization.
From the 1970s, there has been a wave of liberalization in China, which was introduced by Deng Xiaoping. This is one of the key reasons to the rise of China to be one of the economic giants in the world. In the last 25 years of the century, the Chinese economy has had massive economic growth, which has been 9.5 percent on a yearly basis. This has been of great significance of the country since it quadrupled the gross domestic product (GDP) of the country thus leading to saving of 400 million of their citizens from the threats of poverty. In the late 1970s, China was ranked twentieth in terms of trade volumes in the whole world as well as being predicted to be the world’s top nation concerning trading activities (Kaplan, 53). This further predicted the country to record the highest GDP growth in the whole world.
In the year 2007, China and India ranked first and second respectively in the list of ideal foreign direct investment (FDI) destinations, according to A T Kearney, a global strategic management consulting firm (The Press Trust of India Limited, 2007a). The two nations, because of their similarities in geopolitical, economic and demographic aspects, are often compared with each other. To determine which one is more attractive for businesses to expand to, this essay will examine the business environment of both countries from the following perspectives: political/legal, economic, socio-cultural and technological.
The Internet and international business is an interesting topic- discussing an area of business that will probably be around for many years and possibly centuries to come. Since its earliest days, the Internet has been a means of communication, an essential tool in almost instant communication.
China's development is praised by the whole world. Its developments are not only in the economic aspect, but as well in its foreign affairs. Compared with other developed countries, China is a relatively young country. It began constructing itself in 1949. After 30 years of growth, company ownership had experienced unprecedented changes. Entirely, non-state-owned companies can now be more involved in sectors that used to be monopolized by state-owned companies.
...st and stand in the world. It is predicted that China will one day be the largest economy growing country in world. They continually growing and rebalancing their world to be the best. The growth of economy will depend on the Chinese government comprehensive economic reforms that more quickly accelerate in China transition to a free market economy. The consumer demand, rather than exporting the main engine of economic growth; boost productivity and innovation; address growing income disparities; and enhance environmental. (Morrison, 2014,para2)
Google is the largest search engine across the globe, which has significantly transformed the use of the Internet as an information source. The influence of Google in Internet use as information source is evident in the fact that by June 2010, it accounted for more than 70 percent of total Internet searches in America. In addition to its success and profitability in the global market, Google is renowned as a highly ethical company as demonstrated in its corporate philosophy features. However, the firm’s behavior during the launch of its China-based search engine in 2006 generated huge skepticism from the United States government and several human rights organizations (Baker & Tang, p.2). Since the launch of Google’s Chinese search engine, the company complied with China’s censorship regulations by deciding to filter out terms that are considered politically sensitive. This decision attracted criticism from political leaders and human rights activists who accused Google of betraying its adopted ethical standards by ignoring the essence of freedom of expression and information access. As a result, Google faced a dilemma involving the clash between law and ethics. In the subsequent years, Google reacted to the dilemma by changing its rhetoric strategies in efforts to respond to the changing needs.
People believe that the Internet is a true form of freedom, but individuals in other countries have a much different opinion. Internet users in china are isolate from the main network. Chinas government has placed a firewall on and they filter all “unwanted” Internet martial that could cause any national unrest. It is a complete double standard, the Chinese people are allowed and even encouraged to use the Internet for a long as they want, however all international websites are restricted and whatever a citizen posts on line can be monitored. The Chinese government thinks that by blocking all international sites they are supp...
Interests: A population of 1.3 billion along with a growing economy makes Chinese market extremely important for Google to enter
The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.
An internet history, security and technology has been about just twenty-year’s sins actively existed and become a popular. The internet technology and World Wide Web seems to have changed dramatically since then and money things has been changed around internet technology development, today it seems we simply run our business any place in the world without boundary as a result of globalization. We buy and sell a product from any corner of world we want online easily and we can even deal with a small and big corporate business online nationally and internationally. Also, have a great interaction among different countries 's government, businesses organization, and society interact globally as well.