Contents of Table
List of Figures and Tables
1. Introduction 3
1.1 Aim 3
1.2 Background 3
1.3 Scope 4
1.4 Methodology 4
1.5 Plan 4
2. Findings and discussion 5
2.1 Overview of the problem 5
2.2 Causes 7
2.2.1 Behindhand internet security 7
2.2.2 Credit problem 8
2.2.3 Traditional ideas 10
3. Conclusion 12
4. Recommendations 13
4.1 Perfecting the internet security system 13
4.2 Improving the credit 13
4.3 Enhancing the education and advertising of e-business 14
List of Figures and Tables
Table 1. The internet user growth rate from 2005 to ...view middle of the document...
5 billion. However, according to Guo and Salvendy (2009), compared with America, most people in China have online shopping experience for a quite shorter period. In addition, there were 24% populations made online payments in China (Seeking Alpha 2010). Li (2005) argues that e-business also exist some problems that include the awareness of safety and credit problems. This situation poses less e-business users, internet security problem and low credit will hinder the development of e-business. Therefore, the causes of this should be identified and resolved as fast as possible in order to accelerate the development of e-business.
The problems of e-business will be analysed from 2000 to 2011.
This report data has been collected from Academic Search Complete: EBSCO database, books and internet websites and those data are based on commercial, government and academic resources.
Firstly, the major causes of the problem will be investigated in order to understand the current status of e-business in Chian. Then, the major recommendations can be provided for Chinese Economic Research Centre.
2. Findings and discussion
2.1 Overview of the problem
In recent years, following the information technology (IT) high speed development, there was a rapid increase in the number of user in China (World Bank n.d.). However, lee (2010) states that, in China, the internet payment growth is slower than western countries. In addition payment online is still a problem for China’s e-business in future.
Table 1. The internet user growth rate from 2005 to 2008
|Year |2005 |2006 |2007 |2008 |
|Growth rate (%) |8.6 |10.6 |16.1 |22.5 |
Source: The World Bank n.d.
Finger 1. Online payment user in 2008
Source: Lee 2010
According to Table 1 and Figure 1, it can be seen that the internet users rapidly increased over the past 6 years. Especially, the internet users’ growth rate was 22.5% in 2008. However, in 2008, the payment online user just occupied 22.5%. It means that less than a third of internet users’ trade via the internet.
In fact, in recent years, Xin (2009) argue that China’s economy is experiencing a period which is high speed development. E-business also has some problems. These issues will hider the development of e-business.
Although there are many interconnected and complex causes of China’s e-business development is slower. In this report, it will focus on three major causes: imperfect internet security, credit problem and traditional ideas.
2.2.1 Behindhand internet security
It is well known that the internet is very necessary for e-business. But, in China, the internet security has some problems, such as low level legislation and impact Electronic Securities Trading...