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One-Tenth of China Online

L-A-R-G-E N-U-M-B-E-R-S

According to a semi-annual survey conducted by the China Internet Network Information Center (CNNIC), as of the end of 2006 the number of Internet users in China was estimated to be 137 million, a 10.5% penetration rate.

While that penetration rate is small compared with many other countries around the globe, China ranks second only to the US in the overall number of users online.

In fact, many analysts feel that the number of Internet users in China will surpass the number of US users within two years. At the current rate of growth it is forecast that Chinese Internet users will exceed the 210 million US users by 2009.

Importantly, over 90 million of those users are already connected by broadband — on some 35 million computers.

Therein lies an important distinction. As findings from Vital Wave Consulting indicate, not all Internet users are potential customers.

While the Chinese government figures show nearly 140 million Chinese users, there are less than half that many connected computers. Vital Wave estimates that 50% or more of the users in China connect on shared-access points, such as Internet cafes and school labs, or by hand-held mobile devises.

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