Contents

Executive summary

Contents of Table

List of Figures and Tables

1. Introduction 3

1.1 Aim 3

1.2 Background 3

1.3 Scope 4

1.4 Methodology 4

1.5 Plan 4

2. Findings and discussion 5

2.1 Overview of the problem 5

2.2 Causes 7

2.2.1 Behindhand internet security 7

2.2.2 Credit problem 8

2.2.3 Traditional ideas 10

3. Conclusion 12

4. Recommendations 13

4.1 Perfecting the internet security system 13

4.2 Improving the credit 13

4.3 Enhancing the education and advertising of e-business 14

List of Figures and Tables

Table 1. The internet user growth rate from 2005 to 2008 5

Finger 1. Online payment user in 2008 6

Table 2. Malicious activity by country from 2008 to 2009 7

Figure 2. China’s e-business trust issues in 2006 9

Figure 3. The distribution of online payment users’ age 10

Figure 4. The distribution of population in China in 2007 11

1. Introduction

1.1 Aim

The aim of this report is to investigate the causes of low development of e-business in China. The purpose is to provide recommendations to the Chinese Economic Research Centre and Chinese Government in order to improve this phenomenon.

1.2 Background

Electronic business (E-business) is a new style of business model that is a commercial activity on the internet. In recent years, e-business is increasingly used. However, many problems also exist in e-business. This phenomenon is caused despite the fact that commercial activity on the internet is easy to use, fast and efficient, the distance of trade is long and traders are not face to face. The e-business has security problems because of technology. Therefore, the development of e-commerce is slower in some countries. China is one of them. In