A more centralized system will facilitate policy implementation, government-business dialogue and the development of intermediate support institutions. The big issue is not investment but rather policies and legislation. By its nature, e-commerce can be in tension or conflict with existing policies concerning such things as intellectual property rights, taxation, foreign investment policy and the flotation of Chinese companies on overseas stock markets. Current policies, if left unchanged, could slow down or derail China's participation in the emerging Web economy. Adjustments in legal frameworks, regulations and policies will be necessary.
Competition policy is of critical importance.
Competition may also help to lower costs, which, in the case of access charges for telecommunications and Internet services, will have a significant impact on the diffusion of knowledge. Finally, a crucial step will be increasing investment in training programs to teach officials in government organizations and executives in large companies what e-commerce is all about. Of the many issues and debates surrounding e-commerce development, the most fundamental challenge will be to develop a broad base of Chinese knowledge, skills and capabilities through aggressive human resource development policies. Only this will allow China to become a full participant in the global e-commerce industry. He Jiacheng is vice president of the State Internal Trade Administration in China.