Essay about Questions On E Commerce And China

Essay about Questions On E Commerce And China

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2.2 E-commerce in China:
This section mainly introduce the e-commerce background in China, which is divided into three parts. The first part will mention basic information regarding the Chinese e-commerce infrastructure. The second part will introduce the differences between Chinese and foreign e-commerce background. The last part will mention a Chinese e-commerce company, Alibaba.
2.2.1 The Internet infrastructure in China

Wong et al. (2004) comment that the e-commerce market of China would be prosperous in the future. The Chinese government also believes that the e-commerce imposes positive impacts on the Chinese economy and Chinese organisations’ development, and sets out investing a national data communication network in 1993. It is expected to cover more than 2300 cities and towns in 2008 (T.M. Data, 1998). With the increasing importance of Internet, the Chinese government seriously emphasises the relevant infrastructure and establish the world-class multimedia communication platforms and public data which create the national Internet backbone. The Internet development changes the traditional working pattern and attracts many users, which mainly include that various companies, universities, academic institutions, and governments, etc.

In 1998, some forward-thinking companies pioneer the new business pattern in Chinese market based on the existing Internet backbone. This action officially opened the era of Chinese e-commerce. E-commerce effectively reduces the resources required to start a business for the reason that it requires less working material needs, the number of employees and working space. The e-commerce infrastructure invested by the Chinese government considerably stimulates the development of Chinese e-commer...

... middle of paper ... operate their business internationally by the Internet, different countries do not have the same tax policy on the e-commerce companies, and the Internet still has potential issues of privacy and safety. Countries frequently update new laws to regulate the e-commerce industry, which may impose great influence on the business pattern of e-commerce companies. Hence, it is believed that if a company hire a government officer to act as an outside director on board, he/she is able to provide company with relevant political information and adjust timely the corporate strategy to adapt to the new regulations (Hillman, 2005). Moreover, this outside director also functions as a channel communication channel with government decision makers and enables them to understand the present issues existing in e-commerce industry and affect their decisions (Neville et al, 2006).

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