Wednesday, November 30, 2011
The great leap online.
This article talks about how although right now America dominates E-Commerce sector, but in near future this domination will be shifted to China. China currently has 145m online shoppers compared to 170m American online customers. The rate of growth of online customers in China is immense and this could mean many of the companies shifting their factories to China from USA to avoid high transportation costs.However Chinese people still don't "fully" trust online market which could act as a hindrance in the growth of this market in China
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If more and more companies shift their production processes to China it will only exacerbate the unemployment situation in America.
ReplyDeleteI don't think the E-market is mature enough in China right now. First, internet and computer using haven't been very widely used. In big cities, the using rate is as high as other international cities. While in countryside and smaller cities, many people don't have the access to internet. Second, the supervision system of government and related laws about online shopping are very limited. It is not very safe to shop online, and people know it clearly. Even though, the E-market in China definitely will be a huge piece of pie in the future.
ReplyDeleteChina is growing and trying to catch up with America and other developed countries but there are still a lot to improve. I agree that the technology is still not widely available. Im excited to see what's next.
ReplyDeleteAlong with the fact that China is a rising star in more ways than one, the U.S. is also dealing with the infamous Amazon struggle with taxing in the e-commerce world. If Amazon were to lose, most other websites would fall, causing a decrease in the rate of online buying in the U.S. This would also help China surpass the U.S. e-commerce market because Americans can easily go to a physical store unlike in China.
ReplyDeleteIf China is able to better regulate e-commerce and continue to make it dependable (like Alibaba did), it would only be natural for them to pass us in the amount they buy on-line. The article says that the government has been working to make internet widespread, so if this succeeds, with such a large population, it would be a surprise if they did not eventually pass the US in the amount they buy on-line.
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