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China's e-Commerce Initiative: Leapfrogging Development Stages  
Product Ref: 99/27C Company: China's Ministry of Foreign Trade and Economic Cooperation

Product Type: Case Industry: Software & Services

Related Product(s): Teaching Note
In May 1998 China's Ministry of Foreign Trade and Economic Cooperation (MOFTEC) launched its on-line market gateway: Designed to be China's biggest trading system on the Internet, MOFTEC announced the 'Made in China' initiative as "the first full-scale operation of electronic commerce by the Chinese government." One month later the Ministry of Information Industry (MII) announced a strategic venture with IBM to develop the central E-commerce platform for the country. With the central government promoting E-commerce as a means around domestic infrastructural bottlenecks such as transportation and distribution, the two initiatives were racing to become the gateway through which international E-commerce was 'funnelled' into China.Given the open standards and the open access which are a defining aspect of the growth of E-commerce, could China seriously expect to control the flow of E-commerce to such an extent? Retail E-commerce, in particular, would appear to be handicapped if the government pursued the development of a centrally-controlled E-commerce system. But the alternative X allowing the open standards necessary for E-commerce development X meant opening access to the nations immature and unexposed financial system.
Functional Area : Management of Information Systems

Issues: Development of Electronic Commerce in China
Length: 14 pages Country: China (People's Rep. of)

Pub. Year: 1999 Level of Difficulty: 1
This product type is available in the following language(s):      English
Related Information: N/A
This case is UGC funded.
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