Though such news shows progress for electronic commerce, it also means strong competition for future entrants in the financial services markets of China. In Japan and France, the largest consumer banks in terms of branches are in the postal savings systems, and China will likely follow. Chinese consumers need options and branches in local post offices extend throughout the country. Other financial institutions may be hard pressed to compete. The China Postal Bureau has now announced a new effort to develop electronic commerce.
Considerable difficulties remain for electronic commerce in China.
Consumer banking still lacks extensive services and foreign exchange controls hamper transactions across borders. Still, the announcement of developments in payments schemes and the rapid adoption of e-commerce platforms by banks is impressive. Before China Posts, the Industrial and Commercial Bank of China, China Construction Bank and China Merchant's Bank among others have launched platforms. Already, China Post is the leading delivery service provider in China and has recently introduced home delivery service for parcels. In addition, a large number of e-commerce transactions are paid via postal transfer or money order, especially by consumers in rural areas.