Chinese Internet Fever Cools Down

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2001-01-01

China's buzzing Internet industry calmed down in the latter half of 2000 as more dotcom companies began rational business operations, leaving behind the unrealistic optimism of the start of the year, according to the Ministry of Information Industry (MII).

The number of internet service providers and netizens increased rapidly in the first half year and reached a peak when three major Chinese portals went public on the NASDAQ mid-year. But the trend could not be sustained for the rest of the year and the growth rate slowed, an expert with the Chinese Academy of Electronic Information Industry Development (CCID) of MII was quoted as saying by Tuesday's China Daily.

China had 667 B2C (business to consumer) dotcoms at the beginning of last year, though following mergers, acquisitions and bankruptcies, only 205 had survived by the end of the year, CCID said.

B2B (business to business) still played a major role in e- commerce, accounting for about 99.5 percent of its revenue by the end of the year.

E-commerce revenue for the year reached 77.16 billion yuan (US$ 9.32 billion), of which B2B (business to business) trade brought in 76.77 billion yuan (US$9.27 billion).

In 2001, CCID said Internet and e-commerce will have steady growth with dotcoms changing their attitude from concept competition to service competition.


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