Sunday, October 10, 2010

(Discussion) How Does Internet Censorship Affect e-Commerce in China?

C'mon guys, please drop by to discuss this topic which we are currently doing. As we know, internet censorship in China is not something new anymore. But, how does this internet censorship affect e-Commerce in China? Does it affect the online buying behavior of consumer?

Internet censorship in China is politically motivated and it may reduce growth of e-Commerce and m-Commerce. China has also restricted free access to information that is violation of the basic rights of netizens.

Even the censorship will hamper the growth of e-Commerce & m-Commerce in China itself. Countries that censor news and information must recognize that from an economic standpoint, there is no distinction between censoring political speech and commercial speech.

There is no doubt that if businesses in any country are denied access to either type of information, it will inevitably reduce growth. However, China reiterated that Google and other foreign outfits must obey local law.

As large and diverse internet economy, China can embrace and facilitate a dual process of concurrent development and transformation with very little disruption. In other words China on the other hand can bring changes in its economy and also push for faster advancement in some areas and sectors. Accordingly China’s economy in the recent years despite the Chinese internet censorship has started to develop industries or activities which are broadly defined as components of the new economy of China.

Thus in China, the formation of the new economy has been driven by rapid globalization and the rise of Information technology. Thus this increase in the digitalization of information in the Chinese market highlights the need for reforms in the Chinese censorship. This today China is very much caught up in the relentless globalization of the IT revolution. The markets are dynamic in the new Economy and there is a global scope of competition. There are many networks for organizations that are well established on the internet.

China has a huge competitive advantage as it occupies the top position in terms of innovation, quality, time to market and cost. The organizations give immense importance to research and innovation. There are many alliance and collaborations with other international firms, despite the Chinese censorship.

The business government relations are favorable as the government encourages internal growth and development opportunities. But there are marked tools like the Chinese internet censorship and flexibility is the need for the day moreover there have been rapid developments in the IT infrastructure in China in the recent years and the international firms are unable to tap the huge amount of resources available in China due to the Chinese internet censorship.

Sources:
  1. http://bit.ly/a9o2YY
  2. http://bit.ly/bFnxlI

2 comments:

  1. Hey guys, too bad no one commented on your blog. You have a great topic and you have done a good job with the blog too!

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  2. I like the subject and I'm sorry no one else has opined here. So I'll give you my abbreviated two cents. I think the government's censorship will negatively effect the e commerce sector in China. I say that because they can limit, without warning or reason, the music, books, and any opinion that they deem wrong. This could limit the amount of inventory a company could sell and potentially eliminate already existent (and paid for) inventory. Its a dangerous game and having that cloud hanging over a company's head seems limiting in the growth arena. In full disclousre I'm short DANG which is a Chinese E Commerce operation.

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