Google China: The Chinese Internet Overview

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This document summarizes key differences between internet usage in China and the United States. It notes that the average Chinese internet user is younger, internet cafes are more common, and ecommerce faces challenges like lack of credit cards. Chinese users spend more time browsing content online rather than typing. Top industries include online gaming, music, video, social networks, and blogging. The internet played a role in communicating during a recent earthquake in China. In conclusion, the Chinese internet both shares aspects of the global internet but also contains local characteristics unique to China.

Technologie News & Politik

The Chinese Internet
Kai-Fu Lee
Vice President, Google Inc., President, Google Greater China

June 10, 2009

1
Google Confidential and Proprietary

Usage Differences between China & US

Data Source: CNNIC, iResearch & www.pewinternet.org

Differences in User Demographics

Average age: China 25 Average age: US 42

% New users each year: China 25%, US 3%

Exploring Users
They look, click, but they don’t like to type.

Eye Tracking Results

American Users Chinese Users

10 sec. spent on result page 30-60 sec. spent on result page

Ecommerce

Lack of Trust

Very Few Credit Cards

Escrow Payment

Bicycle Delivery

IM Micro Payment

Mobility

January 7th, 2009 3G license issued to:

• CMCC (TDS-CDMA)
• CUTC (WCDMA)
• CT (CDMA2000)

Blog
• 162M users has personal blogs
• Visits of Xu’s blog: 238M
980K Visits
7K+ Replies

The Chinese Internet…

Inherited from global internet,

Injected local characteristics,

is changing China!

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Google China: The Chinese Internet Overview

1. The Chinese Internet Kai-Fu Lee Vice President, Google Inc., President, Google Greater China June 10, 2009 1 Google Confidential and Proprietary

2. The China Internet in Perspective…

3. Overview Data Source: CNNIC

4. Usage Differences between China & US Data Source: CNNIC, iResearch & www.pewinternet.org

5. Differences in User Demographics Average age: China 25 Average age: US 42 % New users each year: China 25%, US 3%

6. Internet Cafe

7. Greater Reliance on Internet VS

8. Exploring Users They look, click, but they don’t like to type. Eye Tracking Results American Users Chinese Users 10 sec. spent on result page 30-60 sec. spent on result page

9. Ecommerce Lack of Trust Very Few Credit Cards Escrow Payment Bicycle Delivery IM Micro Payment

10. Entertainment Centric & Busy Pages

11. Top 10 Chinese Internet Companies…

12. Online Gaming

13. Music Unlicensed music Free & Legal

14. Video

15. P2P

16. Social Network Service

17. Mobility January 7th, 2009 3G license issued to: • CMCC (TDS-CDMA) • CUTC (WCDMA) • CT (CDMA2000)

18. Blog • 162M users has personal blogs • Visits of Xu’s blog: 238M 980K Visits 7K+ Replies

19. Human Search

20. Internet in Earthquake