TO: China’s Ministry of Foreign Trade and Economic Cooperation (MOFTEC)
FROM: XYZ
RE: China’s Electronic Commerce Initiative
For the development of the economy, developing countries are now required to have modern tools like e-commerce. In many developing countries the initiatives of electronic commerce have been found successful therefore, the Chinese government also paid attention to this segment to strengthen its economy and to align its growth with international standards. Electronic commerce has been launched in China, but now it needs to have a proper control system to control the flow of EC to achieve its desired level of success and growth.
In May 1998, China’s Ministry of Foreign Trade and Economic Cooperation (MOFTEC) launched its online market gateway and made certain alliances with other well-known companies like IBM to develop an effective central EC platform for the country. In 1998 and onwards, the use of technology had grown rapidly and people became more aware about the use of technologically advanced devices such as computers, mobile phones and internet. Due to this rapid growth, the government decided to take advantage of the technology. In early 1997, 10% subscribers of credit cards made purchases on the World Wide Web and over 42% Chinese had credit cards. Although the majority had non-international, non-convertible cards. The subscribers of credit cards were expected to grow rapidly in the coming years. For a strong economy, it was important to have updated infrastructure, easy access to international traders, easy and quick online transactions and adequate telecommunication infrastructure. The Chinese government was in need to update its EC system in order to encourage businesses and people to come online.
It is recommended to MOFTEC to opt for the open standard EC system because this is the only way to boost up the development of EC in China. Although, there is a risk of exposure of the nation’s immature financial system to other risks...........................
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