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My 2nd question is: China Surpasses U.S. in Number of Internet Users.
By DAVID BARBOZA.
Published: July 26, 2008.
SHANGHAI China said the number of Internet users in the country reached about 253 million last month, putting it ahead of the United States as the worlds biggest Internet market..
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Diego Azubel/European Pressphoto Agency.
An Internet cafe in China. The majority of the countrys Internet users are 30 or younger.
The estimate, based on a national phone survey and released on Thursday by the China Internet Network Information Center in Beijing, showed a powerful surge in Internet adoption in this country over the last few years, particularly among teenagers.
The number of Internet users jumped more than 50 percent, or by about 90 million people, during the last year, said the center, which operates under the government-controlled Chinese Academy of Sciences. The new estimate represents only about 19 percent of Chinas population, underscoring the potential for growth.
By contrast, about 220 million Americans are online, or 70 percent of the population, according to the Nielsen Company. Japan and South Korea have similarly high percentages.
Political content on Web sites inside China is heavily censored, and foreign sites operating here have faced restrictions. But online gaming, blogs, and social networking and entertainment sites are extremely popular among young people in China.
The survey found that nearly 70 percent of Chinas Internet users were 30 or younger, and that in the first half of this year, high school students were, by far, the fastest-growing segment of new users, accounting for 39 million of the 43 million new users in that period.
With Internet use booming, so is Web advertising. The investment firm Morgan Stanley says online advertising in China is growing by 60 to 70 percent a year, and forecasts that by the end of this year, it could be a $1.7 billion market.
Chinas biggest Internet companies, including Baidu, Sina, Tencent and Alibaba, are thriving, and in many cases are outperforming the China-based operations of American Internet giants like Google, Yahoo and eBay.
The Internet market is the fastest-growing consumer market sector in China, said Richard Ji, an Internet analyst at Morgan Stanley. We are still far from saturation. So the next three to five years, were still going to see hyper-growth in this market.
Baidu, for instance, said on Thursday that it's second-quarter net profit had jumped 81 percent. During that period, Baidu had a 63 percent share of Chinas search engine market, while Google had about 26 percent, with Yahoo trailing far behind, according to iResearch, a market research firm based in Beijing.
Tencent, a popular site for social networking and gaming, now has a stock market value of $15 billion, making it one of the worlds most valuable Internet companies. In comparison, Amazon.com is valued at about $30 billion.
One measure of the growth of the Internet here, and it's social and entertainment functions, is the popularity of blogs.
The site of Chinas most popular blogger, the actress Xu Jinglei, has attracted more than 174 million visitors over the last few years, according to Sina.com, the popular Web portal, which posts a live tally. According to Sina, 11 other bloggers have also attracted more than 100 million visitors in recent years.
The Internets popularity often poses serious challenges to the government. Online gambling, pornography, videos of protests and addiction have led to regular campaigns to crack down on what the government views as vices. But Internet users have also used the Web for nationalist campaigns to criticize the Western news media or foreign companies, as was the case after riots broke out in Tibet this year.
While several organizations had projected that China would surpass the United States in Internet users this year, the new survey results were the first time a government agency had released figures showing Chinas market to be larger than that of the United States...
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Soon the number of chinese online will be larger than the total US population...
Any information on how much time they actually spend online?..
I think china is next fast growing market compare to us population...
Very interesting thought. Could you imagine having all those people online at once!! But as a whole, this stat is expected, their population is very large, and I'm not surprised they have more people online than us...
I'm sure anti piracy agencies and the RIAA love this news.
Indeed though it is good for IDN names...
I can tell you this much: A LOT.
In Shanghai for example, internet cafes are widespread and there's about a hundred or so computers in each net cafe. It costs about $0.30 an hour on average and most are open 24hrs a day. So one can only imagine the demand.
The city is full of places like Starbucks (and other similar multinational & local chains) with wireless net access and there's always more than a handful of people during the day with their laptops surfing the net.
Learning English online is also very popular, so lots of classes are held online (so they use the internet at school or at work, and again when they get home).
Xiaonei.com - China's facebook equivalent (more like a replica ) currently has an Alexa rating of 280, and what's even more surprising is that from what I hear, you can only join it if you're a local student (you're required to fill in your student details). So that gives you a basic idea of the number of students on the net esp. because there's sort of like a xiaonei hype going on right now.
Shanghai alone has got thousands upon thousands of expats and I can honestly tell you that I don't know any foreigner who doesn't spend hours online almost every single day (incl. when they're at work of course).
Most universities limits the local students' net access but international student dorms all have 24hrs internet, many use it to contact folks back home...if you're paying for 24hrs net access, you might as well spend 24hrs online!.
With all the trading going on from China and the rest of the world, this is definitely just the beginning for China.
BTW, for those who's not sure...the "Tencent" website their talking about is qq.com and not tencent.com...
This is a good news I often sleep 8 hours....
The other time all online.
Early in the morning 24:00 go sleeping.
And the morning 8:00 begins to work.
Im working a network company..........
I am "online" even when i'm sleeping, and I don't sleep at an internet cafe.
Any hard data on how much time they spend on the internet, seeing as most chinese people don't have internet access at home. as for shanghai, aren't there a million foreign people there each day?... i'm guessing they're the ones using up all that starbucks wifi, lol...
I'm surprised this didn't happen sooner, internet has spread around the world like wildfire...
Very little, spending most of their time cultivating plants in their fields - can see very little potential in the Chinese internet market.
Some must have left the fields though did see quite a few , Chinese, in the coffee shops last time I was there - 6 weeks ago...
I'd rather know how much they SPEND online. I'm in this to make money, not give away free bandwidth...
In that case I'm pretty sure it's nowhere near what people in the US spend...
According to a recent AP article:: Total revenues for China's Internet companies soared to 40.5 billion yuan ($5.9 billion) in 2007, up 48.6 percent from the previous year, the research firm Analysys International reported this week. It said revenues should keep growing at an annual rate of at least 30 percent in coming years, reaching 137.5 billion yuan by 2010.
By contrast, U.S. online advertising revenues alone in 2007 were $21.2 billion (145.2 billion yuan), according to a report by consulting firm PricewaterhouseCoopers for the Interactive Advertising Bureau.
So not as much as the U.S. e-commerce, but not chump change either ... and growing fast...