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e-Banking 'A Strategic Choice' In China

Electronic banking in China has launched "a banking revolution", stated Ma Weihua, of the Merchant Bank of China, at the fifth China International eCommerce Summit. Luo Zhefu, VP of the China Construction Bank (CCB), emphasized the need for Chinese banks to develop their credit card businesses, establish individual credit and unify their networks. For the most part, discussions centered on how banks needed to adopt eCommerce to remain competitive.

CCB president, Wang Xuebing, said eCommerce gives banks a huge growth opportunity that requires information and networking technologies to be integrated with their existing business. Xuebing also noted the banking industry to be leading China's development of eCommerce in delivering new products such as wireless and TV banking, e-money and e-wallets. In a similar vein, Weihua said eCommerce would enable banks to escape old restrictions and to innovate.

China has great potential for eCommerce with 90 per cent of Internet users being willing to shop online, despite doubting the security of online financial transactions, according to the China eCommerce Association. Over 600 online retail storefronts are currently live, with last year's B2C eCommerce revenues totaling USD 62.9 million in all. News agency, Xinhua, reported China's online B2B commerce to have generated 76.77 billion yuan in 2000.

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