Electronic commerce in Greater China
| DOI | https://doi.org/10.1108/02635570110394617 |
| Date | 01 July 2001 |
| Published date | 01 July 2001 |
| Pages | 201-210 |
| Author | Charles V. Trappey,Amy J.C. Trappey |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
Electronic commerce in Greater China
Charles V. Trappey
National Chiao Tung University, Taiwan, Republic of China
Amy J.C. Trappey
National Tsing Hua University, Taiwan, Republic of China
Introduction
This paper approaches the study and
analysis of electronic commerce in the
Greater China region from three
perspectives. The first perspective looks at
the elements driving the growth of electronic
commerce, including the development of the
information infrastructures, the growth in
sales of personal computers, the status of
various forms of electronic businesses and
systems emerging in the marketplace, and a
description of government policies being
instituted. The second perspective analyses
the interrelationship between ideas in
published reports and articles that focus on
the development and limitations of the
Internet and e-commerce in Asia and Greater
China. Thus, the first part of this paper
presents facts about the development of e-
commerce and the second part presents the
prevailing ideas and assumptions that may
limit or hinder e-commerce growth and
development. The third and final perspective
of the paper integrates the facts, ideas, and
limitations into a table that projects the
priorities for developing business-to-business
e-commerce, business-to-consumer e-
commerce, electronic based delivery
services, and electronic payment services in
Greater China. The end result provides
managers with a view of the different types of
e-commerce applications evolving in the
region and a tool for strategic planning.
The Internet economy in China,
Taiwan and Hong Kong
The Internet economy in Greater China is
interrelated and interconnected because of
well-established business ties between
private sector firms throughout the region.
The area of greatest difference lies in the area
of public policy, specifically the regulation of
the Internet and extent to which foreign
firms are allowed to participate in the
market. Mainland China has very different
rules about foreign exchange, business
investment, and freedom that consequently
create barriers to free market growth of the
Internet.
However, as long as the Internet is used as
a tool for business within the region or to
enhance exports from the region, there are
few barriers to growth and development
(Lemos, 1998). Following this basic premise,
China takes a proactive and controlled
regulatory approach to Internet business
while maintaining openness to innovative
applications and technology. Hong Kong
offers a less regulated environment but the
private sector is sometimes more
conservative and less proactive than the
private sector in China. For example, Hong
Kong's privately held banks are reluctant to
grant merchant licenses for Internet retail
trade (Mailoux, 1998), a demand that would
be quickly satisfied in China if only there
were privately held banks. Taiwan's
privately held banks and publicly held banks
are at the forefront in the region and offer
many different options for Internet-based
financial transactions. Taiwan is unique in
the region since the Internet infrastructure
has grown along with the computer and
semiconductor industry and plays an active
role in developing computer manufacturing
technology for the world market (MOEA,
1998).
Another difference in the region is that
China's public sector provides more
information about the Internet (CNNIC, 1999)
than do the similar public sector groups in
Hong Kong or Taiwan. In Hong Kong and
Taiwan, statistics are best obtained through
the private sector enterprises and
organizations (ITIS, 1999). Finally, China is
taking the lead in opening university
research centers with major international
technology firms and initiating e-commerce
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[ 201 ]
Industrial Management &
Data Systems
101/5 [2001] 201±209
#MCB University Press
[ISSN 0263-5577]
Keywords
Electronic commerce,
Information technology, China,
Internet
Abstract
The Greater China region (China,
Taiwan and Hong Kong) has more
than 1.2 billion people, about one
fifth of the world's total
population. This incredibly large
market continues to modernize
rapidly, and over the last five
years, the region has maintained a
very high economic growth rate in
comparison to the rest of the
world. The combination of market
size and economic growth makes
Greater China the most promising
place in the world for Internet
products and services. China,
Taiwan and Hong Kong recognize
the opportunities and via public
and private initiatives are
investing in the development of
information technology (IT) and
the Internet infrastructure. This
paper outlines the key electronic
commerce (EC) trends and events
in the region. Further, the research
analyzes the current impediments
to Internet commerce in China,
Taiwan and Hong Kong and
provides strategy and directions
for the region's EC development.
An earlier briefing of this
research was published in
www.chinaonline.com China
Online is an online news and
analysis site that provides
business information on
China. This research is
sponsored by ROC National
Science Council Research
Grant
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