It's also the color used to record negative revenues, which have dogged China's pioneering Internet companies. It shouldn't be long, however, before fortune begins to smile on China's online economy. Chinese consumer Internet spending patterns show signs of maturing. Users used to shop online primarily for computer hardware and software but now focus more on media purchases, such as books, magazines, CDs, toys, and games. IDC's survey found that the most common form of payment for B2C transactions is credit cards, despite the relatively small number of people who have them in China.
Users lacking credit cards typically pay cash on delivery.
These fears may not be unreasonable, given a general lack of experience with both credit cards and online shopping. China's 2004 online population will be more than twice that of any other Internet market in the region Two out of five Net users in China hail from educational institutions. Growing Pains Despite evident enthusiasm from China's Internet providers and users, China's regulatory environment remains difficult to navigate for both local start-ups and Western investors. Censorship is still alive and well. The State Bureau of Secrecy prohibits release and discussion of government information on the Internet, and places the burden of enforcing theses rules on ISPs, which can be shut down if postings of state data are found on their facilities.