The state network information center of China, China Internet Network Information Center (CNNIC), founded as a non-profit organization on Jun. 3rd 1997, continuously carried out semi-annual statistical surveys on the internet development in China since 1997. According to CNNIC last released data, by the end of 2012, the population of internet surfers will have surpassed 500 million. However, Internet penetration in China is still quite limited, even if fast growing: the growth rate is about 4% (28 million new users about). The network in China is not yet fully developed and the potential margins could be higher.

CNNIC’s reports show that the proportion of Chinese internet users accessing the Internet for entertainment, information and networking purposes was high: the popularization rate of the three Internet applications in internet users was all over 50%. Internet entertainment application tended towards stability after long-term fast growth. Online music application remained ahead with an increase of 1.8% within six months in use rate; the number of online video users surged by 10% within six months with a decrease of 1.9% in use rate. The number of users shopping online rose to 87.88 million against the economic crisis, an increase of nearly 14 million within six months, while the use of online payment increased by 4.8%. However, the level of transaction applications remained low and relatively behind, representing a high potential business to be better developed in the future. Besides, given the sharp drop in costs for the Internet (it is estimated that China's internet users will exceed the computers’ ones before 2013) and the high urbanization and income per capita, it is not inconceivable to expect that the rate of diffusion of the Internet in China exceed the threshold of 50% by 2015.

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