Chinaâs Internet Industry (CRS Report for Congress)
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| Release Date |
Aug. 14, 2000 |
| Report Number |
RL30636 |
| Report Type |
Report |
| Authors |
Thomas Lum, Foreign Affairs, Defense, and Trade Division |
| Source Agency |
Congressional Research Service |
Summary:
The Chinese Internet industry is one of the fastest growing in the world; the number of users is
expected to grow from 9 million to nearly 20 million in 2000 alone. Chinese scientific research
institutes, the Chinese government, and Chinese high tech entrepreneurs, many of them backed by
American venture capital, have forged the development of the Internet in China. Upon its accession
to the World Trade Organization (WTO), China has promised to open its telecommunications sector
and Internet industry to much greater foreign investment and trade.
The government of the PRC (People's Republic of China) generally welcomes the Internet's
usefulness in facilitating business transactions and academic research and in attracting foreign
investment. However, many Chinese officials fear the Internet's liberalizing effects upon China's
economy and politics. They have resisted opening up the telecommunications sector and allowing
electronic information and communication to flow unimpeded. State companies monopolize the
Internet service provider (ISP) market. The government attempts to restrict political uses of the
Internet, though it has been unable to monitor and regulate all of the medium's activity. Some
observers suggest that the Ministry of Information Industry will continue to hinder private sector
activity and foreign investment in the Internet industry, despite China's accession to the WTO. This
report will be updated as warranted.
