The conditions for improving network infrastructure, the payment and settlement procedures of an online system, and information security have all paved the way for China's e-commerce sector to further develop.

The national e-commerce system has seen major developments in recent years. In February 2003, a nationwide credit card information network was built up in 11 main special economic cities including Shanghai (East China), Tianjin (North), Jinan (East), Shenyang (Northeast), Chengdu (Southwest), Xi'an (North), Shenzhen (South) and Haikou (South).

The Chinese Government has placed great emphasis on security issues and the protection of the legal rights and interests of businesspeople in the development of e-business. China Telecom, the General Administration of Customs, and the People's Bank of China (the central bank) have organized a certification authority center to research and develop protection standards, electronic signature recognition (which helps fight identity theft)), and cryptography (writing or solving coded). These efforts have all provided the backbone of China's burgeoning e-commerce sector.

A young college graduate is an example of entrepreneurs now riding the e-commerce wave. In the summer of 2004, Hong Qiliang graduated from Shanghai University with a degree in advertising design. When his classmates were busy with job searches, he decided to start an online retail business selling everything from mobile phones to electronics.

In the first two months, he earned 20,000 yuan ($2,400), winning first place in a national e-commerce competition. His business continues to expand and he now has big-name clients like Motorola and Siemens, who have both authorized him to sell their products.

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