Report: Wireless B2B E-Commerce Developing in China

According to a report from the Yankee Group, many experts are looking at business-to-business (B2B) e-commerce to help the Chinese develop a modern value-added manufacturing and service-based economy.

The study reports that only 10 percent of the country’s 15,000 large and medium-sized state-owned enterprises have gone online. “The private sector can and will lead Internet content development and the development of e-commerce platforms in the Chinese language when allowed,” the report concludes.

Lack of PCs a Potential Roadblock

One of the major potential roadblocks to the growth of e-commerce in China is a dearth of PCs in the country. Wireless communication companies, however, stand ready to step in to provide e-commerce services if there are not enough PCs.

MeetChina.com, China’s official cross-border Internet trade portal, recently signed an agreement with Motorola, Inc. and China Wireless Information Network to broadcast B2B purchase inquiries to a potential audience of over two million people using Motorola wireless communication devices in China.

MeetChina.com’s planned broadcast of B2B trade leads, the first of its kind in China, will provide five channels of industry trade inquiries and information to a nationwide audience.

Real-Time Electronic Marketplace

By reaching Chinese manufacturers and traders with purchase inquiries and other information through the daily wireless broadcasts, MeetChina.com, Motorola and China Wireless Information Network said they will be taking a step toward building a real-time electronic marketplace for interaction between Chinese suppliers and overseas buyers.

“The use of wireless communication devices to broadcast purchase inquiries to Chinese manufacturers will start a revolution for China’s export sector,” said MeetChina.com CEO Joseph Tong. “Today many Chinese businessmen don’t look at computers, but almost everyone carries a mobile phone or a pager.”

“The service gives suppliers constant access to the international marketplace, and offers buyers an easy system for sourcing product and negotiating terms online,” said Albert Lam, Vice President of Motorola. “Providing more in-depth information is the best way to overcome low PC penetration and spread the use of the Internet in China to provide overseas buyers the ability to reach millions of decision makers at Chinese companies.”