China is aware of the importance of e-commerce. Wu Jichuan, head of the Ministry of Information Industries, recently told a conference that the department will build a package of measures to support developments in China. Industry figures believe strongly in Beijing's commitment. It works with local PC manufacturers to help grow the market, and bring in cutting-edge technology.
Penetration is low - but the good news is that there are a lot of sales yet to come.
Within the home market, the biggest driver is education. Schools make up 10 percent of the PC market, and the government is doubling its spending on computers for education every year. Intel also has a network of microcomputer workshops for children, and these are used to train families and teachers in the use of PCs. So far, some 30,000 families have been trained in the workshops. A powerful differentiator, though, is the way it works around the fundamental problem of coping with Chinese characters on a non-Chinese system.