This research comes as the Ministry of Information Industry in China reports that it expects the value of internet business in China will reach $1.2 billion by 2002.
Until recently the Asia-Pacific internet market has been slow to develop owing to a number of problems including cultural and linguistic barriers. However, companies wishing to establish themselves in the Asia-Pacific internet market are finding ways of overcoming these difficulties.
There have now been a number of trade agreements signed between Asian countries in order to facilitate e-commerce activities by making provision for the use of digital signatures and cross-border marketing.
US companies have also begun to recognise the potential in the Asia-Pacific e-commerce market. The rise in interest is demonstrated by Microsoft and Compaq’s joint “IgniteAsia” competition which offers internet companies the opportunity to win funding from US investors.
Observers suggest that Hong Kong is in the strongest position to develop e-commerce because of its low trade barriers, but it is believed that benefits and improvements will be felt throughout the whole Asia-Pacific region.
Hong Kong internet portal and advertising company chinadotcom has just spent $5 million to purchase a 3% share in one of Australia’s leading online advertising networks.
Commenting on the deal, Anthony Bertini, chief executive of BMCMedia, said, “we chose to partner with chinadotcom corporation because we share a similar view of the huge growth opportunities which are currently emerging in the Asian internet market”.