Conclusion

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While the Chinese government is enthusiastic about the potential of the Internet for e-commerce, the impressive Internet growth in China has not been accompanied by notable growth in B2C online trade. Low bankcard acceptance among consumers and relatively underdeveloped electronic payment systems have hampered the development of pure Internet-based online transactions. The aforementioned impediments are the result of noninteroperable banking networks, inadequate online security control and a weak e-commerce regulatory system, which together have rendered Chinese banks unable to support online transactions and Chinese consumers unable to trust the electronic network for online trading. China has been showing strong signs of becoming one of the top economic powers in the world and cannot afford to be left behind when e-commerce becomes a key element in globalisation. The major ramification for the Chinese government is that if the country were unable to provide a stable and transparent infrastructure and operating environment, as well as secure payment systems and protocols in a fully open and competitive market, the idea of using e-commerce as a source of economic development would be meaningless.

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