Executive Summary

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The Chinese government has been keen to develop electronic commerce (e-commerce) as a source of economic growth and modernization. While B2B (business-to-business) online transactions are boosted by state-owned enterprises or government-affiliated businesses, B2C (business-to-consumer) online transactions constitute a very minor proportion of e-commerce activities. Several obstacles have deterred consumers from embracing the Internet for B2C online trading and payment, such as inconvenient electronic payment systems, low public confidence in the insecure electronic networks and inadequate regulatory frameworks. It is imperative for the progress of e-commerce in China that electronic systems are secure, and operating frameworks transparent and stable. Otherwise, this emerging market economy will lag behind in enjoying the economic benefits of e-commerce, an emerging key facet in the World Trade Organization (WTO) environment.

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