Internet in China - The Great Digital Wall

INTERNET IN CHINA : THE GREAT DIGITAL WALL


PREFACE

Luo Bin, a story that can be used
as a preface

L
uo Bin was a Skema Business dreams of capitalism as many others

School student. A young among French Business Schools.

French man who grew up in At dawn of his third and last year of study

the American Dream, fascinated by the Big in that Business School, he found himself

Apple, and intrigued by Las Vegas and facing a simple dilemma that would,

Miami flashy and overrated, by the Show nevertheless, have a huge impact on his

off, patriotic and entrepreneurship image future: to leave and discover a country and

of American citizens, with the ultra a culture that didn’t seemed attractive to

dynamism of the Silicon Valley and the him at the real beginning or to drop his

astonishing domination of American mere objectives that first made him

movies on international screens. decided to enter a Business School: to get a

In some ways, a typical young man born in professional or academic significant

the 80’s rocked and nourished by the experience in a foreign country.

American fever, and utterly fascinated by Then, despite the deception not to find a

the Big Apple fragrances, a student who way to live one in the US during these four

Robin Garabedian – Msc IMBD 2010 2
SKEMA Business School – 60 rue Dostoïevski – BP 85 – 06902 Sophia Antipolis Cedex – France
Email: msc@ceram.fr - Tel : +33 493 954 419 – Fax : +33 493 954 429


years of study, and rather than passing his Beijing, Shanghai, Nanjing, Guilin,

diploma without any rewarding experience Yangzhou or Shenzhen, he had the same

abroad, he made his decision in 2009 to feeling everywhere, the impression to

finally discover the Middle Kingdom. evolve in a country with a voracious

The 13th of September 2009, he took off dynamism, constantly changing, just like

for Shanghai, very excited and aware, at an open-air giant building site. Shanghai

least theoretically, of this country increase gave him the feeling to be the Asiatic New

of size. Even if it was said a developing York, but with a 100 times higher

country by the global economy, he knew potential. He also understood quickly that

that most of these prejudices was the result the expression “The great number gives the

of the lack of knowledge these same strength” was meaningful in that 1,3

countries keeps on having concerning billion inhabitants country, where a

China, whatever big and important this “small” city like Suzhou brings together

country is. Ignorance, lack of between 6 and 9 million citizens, in other

understanding, and even fear are the main words around 3 times Paris and its suburbs.

reasons.

The advantage of this situation is, the He found out an open-minded population,

biggest the prejudices are, the biggest the in contrast of the image still depicted in too

realization will be as well. It is what many western countries. A population who

happened to Luo Bin. From the real is now conscious of her strength, whose

beginning of his life in Shanghai until the thirst for achievement and recognition is at

end of the 4 months of study, he became least as equal as their suffered frustration

aware of what the big majority of persons during years of occupation. He was

were saying, years ago: that China has astonished to notice that a country

today, more than ever, the capacity to considered as “developing” was in many

become the world leader. Be it in Suzhou, fields more advanced technologically



speaking than the US or the Old World developed societies, differences that

countries. He discovered with interest the certainly explain the “controversial”

wealth of the local economical fabric, the diplomatic and commercial relations

dynamism and the finials strength of the between China and the other world leaders.

Chinese industry, noticing they couldn’t be

jealous of American and European The Great Digital Wall is the choice of an

multinational companies any longer. economic field that crystallizes probably

more than the others the excesses and

He took advantage of his travel to improve contradictions of this country: the Chinese

his knowledge through marketing analysis Internet market. It is as well the choice of

of local firms, especially in the Internet an issue that can be implemented on many

and New technologies fields, and he left economic fields in China: the difficulty for

the country resolving not to drop down all western firms to move in the Empire of the

the work he started there… Middle.

As you may understand, this is a

caricatured story, voluntarily embellished Robin Garabedian
Paris
in that part of the file, about my own
August 2010
Chinese experience. I don’t have the

pretentiousness to speak about myself in

this file, which will be useless, but just to

explain how this academic experience has

deeply transformed my perception toward

this country, whose evocative name of

“The Middle Kingdom” is more and more

making sense, a country where culture and

history are deeply different from our



TABLE OF CONTENTS

PREFACE: Luo Bin, a story that can be used as a preface p.3

EXECUTIVE SUMMARY p.8

METHODOLOGY p.10

LIST OF TABLES AND FIGURES p.11

INTRODUCTION: The world new master? p.12

CHAPTER 1: A STORY OF HISTORY p.16
1.1 BRIEF LOOK INTO THE CHINA HISTORY p.16
1.2 CHINA IS BACK ON THE TOP OF THE WORLD CHESSBORD… p.20
1.3 …AND WE CAN SEE IT p.22

CHAPTER 2: IMPACT OF THE INTERNET ON THE CHINESE SOCIETY p.25

2.1 CHINA THE INTERNET “Uncle Sam”! p.25
2.1.1 A LITTLE BIT MORE THAN A DECATE OF INTERNET CONSUMTION p.25
2.1.2 FROM THE ECONOMIC OPENING TO THE VIRTUAL OPENING p.28
2.2 INTERNET A CULTURAL AND SOCIETAL CHANGE AGENT FOR CHINA p.31
2.2.1 A HOPE FOR FREEDOM IN CHINA p.31
2.2.2 STOREFRONT AND IDENTITY p.34
2.2.3 PUBLIC OPINION AND ONLINE ACTIVISM p.37
2.3 POLITICAL, ECONOMICAL AND SOVEREIGNTY ISSUES p.42
2.3.1 ECONOMICAL STRATEGY p.42
2.3.2 CONTROL STRATEGY p.44
2.3.2.1 The Great Firewall of China p.46
2.3.2.2 Cyber-Police & Cyber-Warriors: « Boys in Blue » and the « Red Visitors » p.47
2.3.2.3 Collaboration and Self-regulation p.48
2.3.3 GOVERNMENT ONLINE “ACTIVISM” STRATEGY p.50
2.3.3.1 Government 2.0 p.50
2.3.3.2 A new government legitimacy! P.52



CHAPTER 3: THE “NON INTERNATIONAL” WORLD BIGGEST INTERNET
MARKET p.54

3.1 OVERLOOK OF THE CHINA INTERNET MARKET p.54
3.1.1 GENERAL FACTS AND FIGURES p.54
3.1.2 CHINA DIGITAL LANDSCAPE p.56
3.1.2.1 Network access p.56
3.1.2.2 Network application & users behaviors p.58
3.1.3 MOBILE PHONE REVOLUTION p.63
3.1.4 KEY INTERNET PLAYERS IN CHINA p.65
3.2 THE RISE OF THE DIGITAL GIANT p.66
3.2.1 FROM COPYCAT TO THE NEW WORLD DIGITAL LABORATORY p.66
3.2.2 TENCENT QQ SUCCESS STORY p.68
3.2.3 BAIDU, THE “CHINESE GOOGLE” p.73
3.3 WESTERN INTERNET COMPANIES IN CHINA p.76
3.3.1 CHINA WHERE WESTERN INTERNET COMPANIES OFTEN FAILED p.76
3.3.2 GOOGLE CASE STUDY p.78
3.3.3 HOW TO CRACK CHINA’S INTERNET MARKET AND AVOID FAILURE p.81

LEARNINGS & CONCLUSION:
China becoming the “guiding light of the Internet world” p.84

REFERENCES p.87

APPENDICES p.89


EXECUTIVE SUMMARY

• History in China plays a role similar to • The central power applied to set up a
religious texts in other cultures. And it repressive, solid and competent system
is through history that the notion of by organizing the political censorship
“devotion” has to be understood. at every levels of the network
infrastructure. This system is built
• China is back on the top of the world around three axes: the "Great Firewall
Chessboard. In 2010 China has of China", an efficient Cyber Police
surpassed Japan as the world 2nd and the collaboration and self-
economic puissance regulation of the Internet users,
moderators or hosts.
• Internet became one of the most
revolutionary technology to evolve in • The state is using the power of the
China and a popular and important tool Internet to modernize its country and to
of modernisation. prolong its rule.

• Internet remains a problematic issue in
China. An issue on three big levels: at • With 420 million of net citizens up to
a societal level, at a political level and June 2010, China is closer than ever to
at an economical level. reach the gap of the half-billion
Internet users. The number of net
• The advent of Internet in China citizens in china is now more than the
corresponds to the arrival of a real Internet population of its two
space of freedom that did not exist followers, the United States and the
before. The Chinese society has opened Japan (respectively of 239,9 million
to the world and the world opened to it. and 99,1 million Internet users).
• China Internet market has crossed
• The emergence of Internet introduce
CNY 290 Billion by 2009 and it is
the notion of individualism and
expected to cross CNY 900 Billion by
competition in the Chinese society
2012.
• Internet brings an area of “ liberty of • For long time Internet cafés were the
expression” allowing Chinese people to first and the only place where Chinese
express a public opinion, a “cyber people could found computers and get
public opinion” and an “online connected to the online world.
activism” which is “a response to the
grievances, injustices, and anxieties • This growing diversification of devices
caused by the structural transformation used for surfing on Internet, mainly
of Chinese society”. mobile devices (mobile phone and
laptop), boost the amount of time



spend by Chinese Internet users. Thus, • The Chinese Internet Giant names are:
in the first half-year of 2010, Chinese Tencent QQ, Baidu, Alibaba, Taobao,
net citizens spent an average of 19,8 Sina, Youku, Renren…
hours by week online, up from 18,7
hours in December 2009. • Chinese Internet Giant well understood
the necessity to adapt the western
• While over 70% of the American models to the Chinese user experience.
Internet population is over 30 years
old, the opposite is true in China, • QQ is the world largest online
where more than 70% of the Internet community with 583 million active QQ
population is under 30 years old. accounts (and is said to be covering
95% of Chinese Internet users and 78%
• Chinese Internet users use their Internet of China’s IM market in terms of
connections principally for two things: frequency of use), a number bigger
to entertain themselves and to than the total population of the
communicate with other. European Union, and the most
lucrative social network with a market
• Video-streaming and music sites are capitalization of $38 billion.
key entertainment destinations for
Chinese digital users. • EBay, Yahoo, Myspace, all of them
failed to live up to their initial
• The third increasingly prevalent form expectation.
of entertainment in China is online
gaming (China Online Gaming market • Internet companies have largely failed
is expected to cross CNY 70 Billion by in China because they don’t have local
2012). expertise, are too slow to adapt and
don’t know how to deal with the
• 72,4% of Chinese Internet consumers Chinese government.
use the Internet for IM
• The first step to trying to succeed on
• For many people in China, the mobile
the Chinese Internet market is to
Web is the only one they need.
understand how the Chinese Internet
• The Chinese web market is very ecosystem works and then to learn the
competitive, with hundreds of actors lessons from the failures of each other
which compete intensely and from the success of local
companies.



METHODOLOGY

Internet in China: The great digital wall, is results collected were not enough efficient

a reflexion on the impact of Internet on the to identify clear trends or point of view.

Chinese society and an analyse of the
CHINA FRIEND OR FOE?
specificities of the Chinese Internet market By Hugo De Burgh
Icon Books, 2006
and the repercussions that generate for
INTERNET ET LA CHINE
Internet western companies. By Pierre Haski
Seuil, 2008
To help me in this reflection, and allow me
THE POWER OF THE INTERNET IN
to compare various points of view and CHINA: CITIZEN ACTIVISM ONLINE
Guobin Yang
theories, I used 4 books, two quantitative New York: Columbia University Press,
2009
studies, and dozen of blogs run by experts,
RED WIRED: CHINA’S INTERNET
specialised on Internet issues, Marketing REVOLUTION
Sherman So & J. Christopher Westland
issues and China. Marshall Cavendish Business, 2010

Otherwise, to complete these data I tried to CHINA’S DIGITAL
GENERATIONS 2.0
conduct my own study by launching a Digital Media and Commerce Go
Mainstream
discussion on my twitter account (which David C. Michael & Yvonne Zhou, May
2010
includes 200 followers from new
STATISTICAL REPORT ON INTERNET
technologies fields, from Marketing, DEVELOPMENT IN CHINA
China Internet Network Information
Advertising and Media fields) on the topics Center (CNNIC)
July, 2010
covered in this report. Unfortunately,



LIST OF TABLES AND
FIGURES

Figure.1 Net Citizen scale and popularization rate in China (Source CNNIC) p.55

Table 1. The Six Chinese Internet User Segments p.61

Figure.2 Mobile Media Usage - Q1 2010; US vs China (Nielsen) p.64

Table 2. Market leaders by catégories p.66



INTRODUCTION

The world new master?

F
or those who‘ve been in china it brought American and European countries

is just amazing how quickly at a dominant position within the world

this country changes. For those chessboard, the thirst of recognition of

who have never been in china it’s just Chinese people is bringing the country at

frightening! the place where it has always wanted to be:

In the middle of the world economy. You

Chinese people are “starving people”. It is just have to look how eagerly they eat, how

in these terms that the French magazine they laugh, how young Chinese fight to

“Le Point” starts his special report about win a basketball game, a soccer game or

China in his December 2009 edition. And whatever other game, how they compete to

to be honest I totally agree with this image. always build the higher building. Just

Don’t see here a pejorative way to describe listen to the Shenzhen textile or high

the Chinese people but, I think that it is technologies factories workers, who will

now clear that the first and maybe the main explain you that they are working overtime

strength of the empire of the middle is his to afford a small piece of what we already

people. As well as the knowledge and the have, dream of starting a small company

creative ideas of western people have and become their own bosses, etc… Then



you will maybe understand what I’m what it means for the workers, the

talking about. peasants, the 1.3 billion men and women

At a time where the crisis is biting the who didn’t had the same opportunities that

world economy, where terms like decrease, we had. The ogre of Middle feeds on

savings, and protectionism are key words, materialism, but also and especially on

while the Westerners are more and more revenge on his own history. A history that

worried about their personal well-being, leads us to the following conclusion: the

the Chinese are instead driven by a current situation of China is everything

common desire to live and get richer which except a hazard.

is at least equal to the excessiveness of

their own country. Back in the global headline news for few

years (especially because of its dramatic

All around the world, in wealthy countries, growth and its spectacular organization of

people and states are afraid to see their the Olympic Games in 2008, and more

factory moving to China. They want it to recently because of the Universal

stop. Unfortunately we are probably only exhibition), there is today one special field

at the beginning of the game. Don’t in the economy that crystallizes the thirst

misunderstanding, the empire of the of recognition of the Chinese people and

middle is more than ever deserving its the global fascination concerning their

name and in a sense it is only fair. Fair, country: Internet. If you look after

towards thirty years of extraordinary information concerning China on Google,

efforts that have transformed a " backward you can be 80% sure the results will be

" and half destitute country into a world linked to the Internet in China

superpower. We must imagine this is a (cyberattacks, censorship, Green Dam,

long walk out of the Maoist night, and Google Case...). And once again, this is all



but an hazard. If you answer the following are now called Google, Microsoft, Apple,

questions, you will easily understand why! Yahoo, Facebook, Twitter…

According to you, which field best defines Nonexistent few years ago, the Chinese

our 21th centuries societies? Which Internet has experience a dramatic rise, and

economic field is able to claim having in with more than 420 million users and an

the same time a cultural, economic and annual growth over 15%, we can say that

politic influence on all the developed this market is just at the beginning of its

countries? Which means allow you to be life. But, in a country where the opening to

informed, to be entertained, to share, to other countries is still limited, where it is

exchange, to make business wherever and almost cultural to control people thoughts

whatever the place is in the same time? through the control of Medias, where we

Which is the first and unique cross-border can find strong protectionist policies in

massive media, at the global scale? Which order to make local firms stronger, the

economic field best crystallize the renew advent and the development of Internet

and the contradictions of the Middle become a major challenge for Chinese

Kingdom? authorities, but also for foreign firms.

The answers of these questions are Then, if you want to draw up what defines

obvious. Internet. Internet is everywhere in the current Chinese society and what is the

our lives, at every moment, and whatever Chinese market in general, you just have to

the localization is. Internet has deeply catch a glimpse to the Internet in China.

transformed the way people communicate On the one side, the best way to express

with each other, express their opinion, his/her opinion and a potential market that

consume, work, and become a pillar of our offers resources and business possibilities

modern societies. The economic monsters very attractive, and on the other side, a

very powerful tool for the censorship



implementation and very strong constraints Internet question. Then, we will try to

to move in China for foreign firms. A fact answer the following issues:

a bit opposed to the opening desire claimed
- WHAT ARE THE IMPACTS OF THE
by the CCP these last years.
ADVENT OF INTERNET ON THE
Then, the point of this report will be based
CHINESE SOCIETY?
on historic and cultural data presented in
&
the Chapter 1. We will also use qualitative

and quantitative studies of the Internet in - WHY WESTERNERS INTERNET

China and confront different concrete case COMPANIES HAVE DIFFICULTIES

stud, but also different points of view, TO SUCCEED ON THE CHINESE

from writers, economists, journalists, and INTERNET MARKET?

of course from specialist of the Chinese



CHAPTER 1

A story of History

1.1 BRIEF LOOK INTO THE CHINA great ideal of the Chinese civilization:
HISTORY
Unity. A unity that can be put into practice

D
on’t be afraid, the purpose on different level of the society
of this report is not to trace (government, culture, family…).
the history of China. But in Traditionally, Chinese people use to be
this country more than elsewhere the religious believers, and they especially
history is a crucial element to understand used to believe in the cyclical theory of
the attitude and position of China in its history, that each cycle has the tendency to
relations with the world. be rather less acceptable than the former,

with the following assumption: the further
There are two things to know about we get from the legendary past, the more
Chinese history. First of all, that the difficult it is to emulate its successes. This
Chinese civilization is the longest-lasting; idea born in a thought, there is no factual
and second, that knowing it is essential to basis to support this idea. It was
understand a whole country. The China maintained for a few generations until

history could be resumed as a succession inevitable war, be it between dynasties,
of dynasties running around the common because of peasant rebellion, but also



because of the jealousy of the own heaven, whose moral duty was to promote

members of the emperor’s family. The end harmony and prosperity in the world. He

of a dynasty led to another one and so on. had to represent the model of good

behavior and reciprocity between

The common features of the dynasties we generations and people with different

remember are their great achievements. social conditions. In the Confucianism

The first dynasty seems to be founded in theory, a good working government

2100 BC. From 770-221 BC, the area of depends on consent, not on force.

today’s Central China was divided into

several kingdoms before being unified in The Han Dynasty (206 BC- 189 AD) has

221 BC. The “First Emperor” made the followed the First Emperor and has

written language, the currency, expanded China, traded with Rome and

measurements and roads more accessible. established foundations for literature and

He also attempted, like Mao did not that arts. After a period of disunion, the Sui and

long ago, to destroy thought. He is Tang Dynasties (581-907) settled the

commonly associated in Western countries “golden Age”: China reformed internal

with his Terracotta Army, the thousands of government and made possible a great

life-size figures that fills one of the flourishing of sciences and technologies.

underground guard chambers to the The world’s oldest Academy of Letters

network of edifices. These figures and their was founded by the Emperor Xuancong

organization prove the artistic sensitivity (712-756 AD).

of Chinese people during this era. The Ming (1368-1644) consolidated the

According to the Confucianism doctrine, achievement of its predecessors and is

the longest-lasting philosophy, the emperor often seen as the greatest of the dynasties.

represented the link between earth and During this period, China was for sure the



most successful world superpower, during whose rules were believed to be more

which exploration travels were launched regulated than those of the Europeans.

by Zheng He. Indeed, he allowed his Once the west has surmounted China in

country to reach the African coast in the technological competence and military

15th century. efficiency, the respect went and people

In 1644, The Manchus, a border tribe, started to look down on China with pity.

overthrew the Ming and stood in for the The real starting point of this decline,

Qing. Unlike the Mongols, who had which will lead some years later to the fall

resisted assimilation, the Qing emperors of the Imperial system, is the first Opium

were enthusiastic admirers and proponents War that opposed the United Kingdom and

of Chinese culture. Their influence the Qing Empire from 1839 to 1942. The

extended well into South East Asia, central United Kingdom, which previously traded

Asia and Korea. Three of China’s most with China for its tea, had a disagreement

scholarly and able emperors were part of with Chinese new way to make business

the Qing century. and decided to take control over the opium

trade market. The British forced China to

By the 19th century, not only was the cede the territory of Hong Kong in 1842

administration weakened, but a new force and other countries decided to make

was on the scene: A Europe determined to similar demands very quickly that the

trade and to compete in order to dominate Chinese military (sadly corrupted) could

the world. not block. Many port cities such as

Until the 19th century, educated Europeans Guangzhou and Shanghai were divided

really feared China, whose empire was into concessions run by Westerners. The

incredibly rich and magnificent, whose French Concession for instance was

products were greatly sophisticated and established in Shanghai in 1849 and the



city still bears nowadays the scars of this and a famine at a disastrous scale, maybe

period of Western occupation. the most murderous that the Earth ever

Followed a humiliating period, in which carried. The «Cultural revolution " plunged

European and Japanese troops invaded the country into the chaos.

China in order to punish infractions on

agreements they had imposed, and On the International plan, due to the Cold

managed much of China’s political and War, the US policy of communism

financial affairs. containment and its involvement in the

Korean and Vietnam wars, China’s options
The Qing Dynasty was overthrown in 1911
were limited by the international suspicion
and replaced by the Republic. In the 1920s,
surrounding it. In the same time, in 1950
its energies were greatly weakened with
the Red Army took over the East
the attempt to gain control over the
Turkestan, restoring its Chinese name
country, then in resisting Japanese invaders
Xinjiang, and asserted authority over Tibet.
(1937-45) as well as in fighting communist
In doing so, they were carrying out their
subversion.
declared mission of consolidating the Qing
The Republic lost the Civil War in 1949,
Dynasty borders. In 1997, the British
and a new state was declared on 1 October
returned Hong Kong, and Portugal gave
1949, the People’s Republic of China
back Macau in 1999.
(PRC), on 1 October 1949. It is the

beginning of the Mao Tse Tung era (from
Until foreigners decided to challenge, to
1949 till 1973) that transfers with " The
defeat and to humiliate their country, most
Great Quantum Leap " and " the cultural
Chinese people believed that China was
revolution ", intended to revitalize and
the only civilization. Today we can still
restructure the country. The "Great
find people considering that China is
Quantum Leap" will end in a bitter failure



surrounded by enemies, selectively helped to improve the humanity features

interpreting the history of the past 200 we know now.

years in order to present their country as We are criticizing and distrusting their

unique, not such as a civilization, but as a astonishing capacity to copy, but when we

victim. Observers argue that this is a very look back, didn’t Europe copy (not that

important component of the modern long time ago) many scientific and

Chinese identity, of nationalism, and a technical innovations from a really creative

political factor of great power. Empire?!

History in China plays a role similar to As many macro indicators seem to

religious texts in other cultures…the demonstrate, the beginning of a new cycle

religion of the Chinese ruling classes, but could be in working order, forecasting the

not only. And it is through history that the mess of the international economic

notion of “devotion” has to be understood. hierarchy, because the wheel of fortune

seems to turn irremediably in favour of

China.
1.2 CHINA IS BACK ON THE TOP OF
THE WORLD CHESSBOARD… The real Quantum leap of China began in

The West likes to consider itself as a 1976 under Deng Xiaoping, with the

“World subcontractor”. But without implementation of huge economic and

doubting, we have too quickly forgotten industrial reforms. These last ones, said to

that China has been the first superpower be “social with Chinese features”, allowed

for 2000 years, from Antiquity till the the fast increase in consumption and

Industrial Revolution. We have probably exportation, giving the middle-class the

forgotten too soon how much we owe this possibility to appear and to grow up. This

country, like its main innovations that new class will benefit from more ample

rights and freedoms but also, especially



during the 80’s, from an improved At the same time, the first tensions in Sino-

standard of life. Nevertheless, these American relations appeared: on the first

reforms have also contributed to enlarge hand, China blamed the USA of military

discrepancy, corruption and to settle in an malice (bombing of the Chinese Embassy

“unwelcome cultural influences”. in Belgrade in 1999), and on the other

hand, the USA blamed China of industrial
Break of an assessment, Tiananmen events
spying. On the local point of view, the
in 1989 that led to an international blame
population standards of lives kept on
towards China’s government.
improving in the West side of the country,
Between 1989 and 2002, the reform wave
creating discrepancies between East and
kept on working following the same
West, between the countryside and the city
pattern (but improved) as former ones
more and more growing. The first
under Jiang Zeming, who succeeded to
preoccupation of the country became the
Deng Xiaoping after the terrible events of
education.
Tiananmen. Despite the embargo decided
Since 2002, the country continues to
by western countries, the economic growth
display a 2 figures growth, because of its
of China picked up again (the current
cheap working force, and because of the
average on economic growth is annually
trade possibilities technologies offer.
around 8 and 9%). The stability displayed
Indeed, kept up by the protectionism
during the Asiatic financial crisis in 1997
measures taken towards the Chinese firms,
was the proof of an economical efficiency,
and due to the voluntary maintaining of the
and of its growing preponderance. After a
local currency, the Yuan value is very low.
decade of negotiations, the Chinese
The thing is such growth will enable the
government finally entered the World
Chinese economy to welcome the Beijing
Trade Organization.
Olympic Games in 2008 and to organize in



2010 the largest World Exhibition ever, Better: the efforts that have been

showing to the world the revival and the implemented by the country for 30 years,

supremacy of the Middle Kingdom. coupled with the necessity of multinational

companies to find new market resources
But these events also allowed to point out
because Western ones are saturated, have
that the communist government still had
contributed to make China a substantial
some huge difficulties to stop the evil that
market and a partner. China is THE place
wears down the country: issues on human
to be.
and social rights (disastrous management

of the Tibetan issue), on freedom of And even if it is not the rooftop of the

speech, on censorship, on a limited World, it is in high ground in many fields.

freedom of press and media, on a structural

unsteadiness… and so on.
Fields where China is the number one!

Cars industry
1.3… AND WE CAN SEE IT!
With around 10 million cars sold in 2009,
If China is still far from having its
China reaches the first place in the car
problems of dramatic growth solved, it has
industry world market, held by the US
nevertheless succeeded in its bet: to come
until then.
back at the forefront of the global

economy. Then, China took advantage
Wind machines
from his capacity to resist the global Because China consumes a lot, it has bet

economic crisis to reach the second place really soon on the wind power, be it on its

hierarchically speaking, just after the US fabrication, or on the creation of the first

and before the Japan. wind farm. It became the first producer of



this last one. Western powers are buying it Cars and electric vehicles batteries
Chinese authorities, who know their
spare parts.
country lack of oil, has clearly seen the

opportunity electric vehicles could offer.
Solar panels
In 2007, China became the global leader of Because they missed the gas motor

solar panels production. Thousands firms revolution, China wants to become the

have decided to get the opportunity too. leader of the electric revolution now.

They are offering their services to other

countries like the US or the Japan. Mobile phones
Hello, give me Shenzhen please. China is

producing over than half the mobile
Colour Television
China is the first global producer of colour phones sold in the world, from cheap

televisions, far away from the others. All products to really sophisticated

technologies (LCD, plasma…) and all Smartphone. A large part of this process is

other formats are made there. This done is the giant industries of Shenzhen.

production targeting of course developed The “made in China” mobile phones can

countries but also developing countries. adapt to standards that change from a

country to another.

Toys
Miniature toys, helicopters, dolls, teddy
Domestic electrical appliances
bears… Could Santa Claus be Chinese? Because Chinese borders are almost

Because the two thirds of the global toy closed, the locals could make some

production are made in China, we feel like electrical appliances without a strong

saying yes! competition. China has now a huge

domestic market, and has started to make

in crowd fridges, washing machines,



ventilators, air-conditioners, vacuum But China is also the number in… Leather,

cleaners… Low power light bulbs, motherboards,

digital cameras, cement, ceramics, aspirins,

Textile industry vitamins, containers, granite cobblestones
Who has never wear any « made in
and paving, aquaculture, crayfish, garlic,
China » stuff? Chinese textile and clothes
wheat, tobacco, shoes, Nylon, pianos,
exports have overtaken 180 billion dollar
bicycles, lighters, rackets, sex toys
in 2009!
production and…INTERNET!!!

Computer hardware’s
China owns a really famous computer

brand: Lenovo, known to have bought out

the IBM PC division in 2004. This brand

has now reached the fourth place in the

global hierarchy. And even if the brands

are not Chinese, most of computers are in

fact made in China. Many giants of this

field have decided to implement

production lines there.

Iron and steel
The Chinese industry should display in

2009 a production that overtakes 500

million tonne, which means more than

40% of the global production!



CHAPTER 2

Impact of Internet on the Chinese
society

2.1 CHINA THE INTERNET “Uncle reality introduced few years before, in
Sam”!
1987 when the first email was sent (see the
2.1.1 A LITTLE BIT MORE THAN
A DECADE OF INTERNET figure. Key dates in the Internet history).
CONSUMPTION
Like any other new born technology in

W
hen the biggest country
China, the Internet experienced a rapid
in the world meets the
growth.
means of mass

communication by excellence, we can
Below are some of the most important
expect very interesting effects. We can say,
dates of the Internet history:
at least, that this situation has generated
• 1987: The first email is sent in
various analysis and commentaries.
China on the academic network
Officially introduced in the empire of the
CANET (Chinese Academic
middle in 1994, when the country was
Network)
connected for the first time to the world
• 1988: The college network of
global Internet network (to the U.S.
Tsinghua University provides
operator Sprint), China’s Internet was in


university student and staff with internationally by US carrier

email service within the university. Sprint.

• 1988: Major cities are connected • 1996: Creation of the first

• 1990: China registers domain name backbone (ChinaNet, GBNet,

“cn” and other networks begin to CERNET) and the first Internet

arise. coffee in China.

• 1993: Primary Telecom services • 1997: China Internet Network

established – China Telecom. More Information Center (CNNIC)

networks become directly founded under authorization and

connected to Internet. direction of Ministry of

• 1994: National Computing and Information (MII).

Networking facility of China • 1998: There are 4 official networks

connected. The first website was serving approximately 1.175

set up. million Internet uses.

• 1995: Commercial use permitted. • 1999: Emergence of online open

Networks set up to facilitate and lively discussions.

beyond academic and research • 2000: first regulations of the

purposes. China NET, the first Chinese authorities on monitoring

commercial network, begins to and Internet filtering.

operate in major cities Beijing and • 2001: creation of the Internet

Shanghai and allows Individuals to Society of China.

purchase Internet access directly.

China Net has a number of internal However, the use of the Internet remained

networks e.g. CANET (China marginal in China until the late 90s. In the

Academic Network) and is linked late 90’s, only 4 million Chinese people



had an Internet connection, mainly through In the technical field, for instance, China

university networks. The end of the 90s owned competent and effective operators,

saw the emergence of the big Chinese non- providing an access to a fast and fluid

specialized portals. Sina, Sohu, 163.com network accessible to the greatest number.

quickly became the meeting points of the Furthermore, the first operator of the

Chinese Internet users who could find country is China Telecom (present on

there some information different from various market: backbone, access, hosting).

traditional media, commonly strongly Company which is under state control

controlled by the government. Sina.com, which knew how to maintain its dominant

for instance, has become the preferred position by buying back foreign companies

source of information for a generation of but also thanks to the help of

Internet users by setting up its own team of anticompetitive practices granted by the

journalists. The real take off of the Internet state under the influence of the Ministry of

industry in China eventually took place in information Industry (MII). In spite of the

the early 2000s (33.7 million Internet users fact that the new operators possess their

in late 2001), which coincided with the own IP networks, they have to use the

explosion of the Internet bubble in the "local loop managed by China Telecom".

United States. Conferring to the company of state an

increasingly important monopoly, and so

This explosive growth reflects the allowing the government to control the

convergence of a number of factors: a whole network.

quality network infrastructure, services

adapted to the Chinese market, a dynamics

R & D and last but not least, the strategy

applied by the Chinese government.



The seven major ISPs (Internet Services • CIETNET (China International

Providers): Electronic Trade Network) for the

commercial fields.

• ChinaNet (China Public Computer

Network, commonly called 163
2.1.2 FROM THE ECONOMIC OPENING
Network) exploited by China TO THE VIRTUAL OPENING

Telecom, leader in terms of Market As written before, one of the reason, in fact

shares. the main reason, of the crucial expansion

• China Public Multimedia Network, of the Internet in China was the ability of

commonly called 169 Network, the regime to understand very quickly the

ChinaNet main challenger, need of the Internet as a means of

exploited by China Telecom too, maintaining a sustainable economic

• GBNet (Golden Bridge Network, development. Unlike his North Korean,

exploited by Netcom), Uninet (by Cuban and Iranian counterparts that

Unicom), CMNet (by China prevent their population from using the

Mobile), CSNET (by ChinaSat), Internet (in a large majority), the regime of

• CGWNET (China Great Wall Beijing has chosen to promote Internet and

Network), to use it for its own profit. The President

• CERNET (China Education and Jiang Zemin declared, in one of his

Research Network), for the speeches, that "The development of the

university Internet is vital for the country". So, thanks

• CSTNET (China Science and to the market socialism advocated by the

Technology Network) for the Chinese state added to heavy investments

scientist field in Internet infrastructures, Internet became

one of the most revolutionary technology



to evolve in China and a popular and In their summary of their book, the

important tool of modernisation. ‘History of the Internet in China,’ (Choy

and Cullen, 1999) Richard Cullen and
The government thus decided to
Pinky D W Choy suggest that the Cultural
implement an economic information
Revolution had a large influence on
development strategy based on three
making China so slow to adopt new
phases:
technologies. When China was “cut off
- "Online Government", all state
from the world,” (Choy and Cullen, 1999)
administrations Chinese will be
it meant that there was virtually no access
online, in aim to maximize the
to new information and to new
dissemination of information and
technologies that had been introduced
manage information between each
elsewhere in the world. Once it opened its
level of power.
doors to the outside world, updated
- "Online Business", private
information and instantaneous
enterprises and state will have their
communications were introduced in the
sites to be more visible to
country and China was able to begin the
International investors.
process of modernisation and to participate
- "Family online”, the Internet will
in the Internet revolution.
might allows children living away
The two first issues resulting from this
from their parents to keep in touch.
observation.

Nevertheless, the Internet remains a
From a societal and a cultural point of
problematic issue in China. An issue on
view, the advent of Internet in China
three big levels: at a societal level, at a
brought to Chinese people the opportunity
political level and at an economical level.
to see beyond the bonders of their country.



Bringing them a new tool of information, Beijing that: "The rapid development of

of entertainment and mainly a new field of the Internet plays an important role for

expression. They discovered a new way to economic growth and the intensification of

communicate between each other but also the contacts between various people of the

with people from a different social world, but it should be noted that there are

network, from different countries, with disturbing problems relating to the

different cultures. Internet brought them a Internet". Understand by " issues of

new means to express their needs, their concern relating to the Internet " zone of

wishes and their dissatisfactions. So in freedom that might put in danger the

appearance a new area of total freedom and sovereignty of the current Chinese socialist

a new opportunity to stand out of the mass. power. (See Section 2.2.3)

In appearance only!? (See Sections 2.2.1

and 2.2.2) Fourteen years after the first Jiang Zemin

speech and the arrival of the Internet in the

Although the government is supportive of empire of the middle territory, China has in

the Internet expansion and dispersion, it is 2010 the largest number of Internet users

also controlling it, as we can see through after the United States. Moreover, the only

the sophisticated and multiple levels of cyber-Chinese population is now more

filtering that operates and monitors the important than the overall U.S population

Internet use in the country. (308 millions). Impressive and scary facts

Thus, in order to keep on promoting the when you know that the rate of Internet

Internet as a major tool, Jiang Zemin penetration in China reached only 32% at

explained during his speech at the opening the end of June 2010, according to the

ceremony of the World Computer study of the China Internet Network

Congress, the 21st of August 2000 in Information Centre. By comparison the



rate of penetration of Internet in other 2.2 INTERNET A CULTURAL AND A
SOCIETAL CHANGE AGENT FOR
countries like the U.S or the Japan is
CHINA
around 75%.

So, China succeeds in making its Internet 2.2.1 A HOPE FOR FREEDOM IN CHINA

network the “Uncle Sam” of the world Internet is, in its in-born characteristics, the

Internet mainstream. The Chinese Internet most revolutionary communication

market became an expandable market, technology that the Human race had ever

supplying powerful companies and achieved. If you are not sure to agree with

innovative tools that are driving the world this idea, you just have to look how the

Internet industry. The most visited advent of Internet in our western societies

websites in the world are now Chinese has drastically changed every level of our

websites. But in an other hand, the Chinese day to day lives. But if the Internet had a

Internet firms are still weak beyond their huge impact on our sustainable society,

borders while foreign firms, which are how should we describe the results

more and more thinking of implementing following the emergence of this

their business on the Chinese network for technology on the Chinese society? As a

business reasons, are still facing “Revolution” maybe!!!?

difficulties to compete with local players

like Baidu, Soso, Youku or QQ, due to In his entitled work "Internet and China"

several restrictions and despite their (2008) the journalist Pierre Haski retraces

dominant position in many westerns the changes of Internet in the Chinese

countries. (See Chapter 3) society. He reminds us that between 1996

and 1997, the main avenues of Shanghai

were dressed in banners arranged by the



regime "praising the virtues of Internet and where public opinion had no place to be, to

calling the citizens to register”. a fragmented world, the Internet one. It

As mentioned earlier, the arrival of the corresponds to the arrival of a real space of

Internet on the Chinese ground was above freedom that did not exist before.

all the result of an economic calculation by We must understand that the Internet has

the Chinese regime. But the emergence of changed the lives of Chinese people, much

web entrepreneurs, who took part in major more than it did to us. The Chinese society

economic powerhouses later, revealed a has opened to the world and the world

significant thing: there was an adoption of opened to it. The Chinese themselves have

the technology by the public opinion begun to communicate with other persons

almost immediately. An adoption that the who did not belong to their social network.

Chinese authorities didn’t exactly They were now able to speak with their

anticipated. families outside the continent and to

Pierre Haski is in the right when he discuss various topics on forums

describes the Internet as a real mass (discussions about sexuality for instance

phenomenon in China. Phenomenon that appeared)… Internet became a privileged

has changed things at all levels, in space for sharing thoughts and feelings. A

particular the flow of information. privileged place of expression, a place to

He explained that with the advent of the share their opinions. It also became a place

Internet, China has moved from a very of learning where young Chinese people

strong state culture, where the learn about themselves through the

entertainment corresponded to what different identities they maintain online.

decided the party, where information was As many young Chinese have no brother

limited to what hyper controlled television or sister because of the one-child policy,

and newspapers agreed to distribute and the Internet is a privileged place to make



new friends, to express themselves, to the Internet is mainly used for

exchange, and even, in some cases, to find entertainment, in particular via online

a soul mate. Pierre Haski goes even further video games, and chat.

and believes that thanks to the Internet, a Conversely, Guobin Yang believes in his

Chinese teenager have now access to so book « The Power of the Internet in China:

many things online that between him and Citizen Activism Online » (2009) that the

his father, it is like night and day. major breakthrough resulting from the

Let there be no mistake, Chinese people arrival of the Internet on the Chinese

can adapt much easier than what we ground is found in the emergence of a

believe in western countries, despite the Chinese citizen activism online that is

control over Internet, because they can opposed to the control and to the drift of

access now to things they had no access a the regime. He sees information and

few years ago. entertainment the Internet can provide into

the background.

Without going into details of the Chinese According to me, based on what I have

Internet consumption habits, which will be observed during my trip in China, I would

the object of the study more detailed in rather agree the point of view of Pierre

Chapter 3, Pierre Haski considers in his Haski, although it is clear that the use of

book that the social and cultural impact of the Chinese Internet as a place of online

Internet on the Chinese population is activism exists and is non-negligible.

expressed through the following use of the

technology: In the cities and in the student

environment, the Internet is used as a

source of information and as a means of

spreading the ideas while more generally



2.2.2 STOREFRONT AND IDENTITY The novelist journalist considers that the

Internet plays a fundamental role in the
INDIVIDUALISM
awareness of the Chinese youth to belong
On top of the enlargement of the freedom
to a particular ethnic identity.
notion, Pierre Haski reckons that the
Then, no surprise to notice how diligently
Internet and individualism emerged in the
the young Chinese generation go and fight
same time in China. Individualism that
trolls, dragons, elf, living dead and other
couldn’t be perceived not that long ago in
monsters through online role-plays said
China, because a human being was always
“massive Multiplayer” (Massive
denied to the detriment of the majority
Multiplayer Online Role-Playing Games or
interest. Then, this notion of individualism
MMORPG for the gamers). In 2008, China
has been a real novelty in the Chinese
reached the symbolic number of 1 million
society, following years of collectivism
players simultaneously on the famous
advocated by the Maoist regime. But this
game “the World of Warcraft” (WoW) and
issue also coincides to the only child
numbered around 6 million players in 2009
policy.
on this same game (out of the 11,5 million
The Internet gave to a whole generation of
players claimed in 2010 according to one
young Chinese people the opportunity to
of the game founder, Frank Pearce), before
break with loneliness, to develop the
they reappraised the network operating
feeling of being part of a group, to satisfy
licence. These virtual worlds allow the
the need of identification, of self-
Chinese youth to become the heroes of
definition. Over the mere entertainment
their own world, of their own life.
aspect, revealed by the success of many
Then, this isn’t more surprising to notice
video games, blog and chats, a desire and a
that the most read blogs in the world are
real need to exist as an individual is
Chinese. The blogs of the actress and
hidden.



director Xu Jinglei and those of the day to day life, between two plains, two

budding writer, amateur racing driver and shootings among many other projects and

tormented lady-killer Han Han, are read by activities, and everything is written with a

million Chinese people every day, making positive and consensual style, that

Xu and Han the new models of a advocates the individual responsibility.

generation who needs landmarks.

Han Han – involved in politics, sarcastic
and cynical
Xu Jinglei- positive and consensual.
http://blog.sina.com.cn/twocold
http://blog.sina.com.cn/xujinglei
At only 28 years, Han
Launched in 2005 on
Han is a true idol in
the blogging portal
China. Car driver and
Sina, while she was
successful author in
just a TV star, the blog
the same time, singer
of Xu Jinglei became
in his spare time, he is especially famed
in two years the most visited in the world,
because he won in 2008 the competition
and she was given the blogging world
against Xu Jinglei that elected his blog as
championship. In 2007, Technocrati
the most famous in China and the most
(website that awards more than 60 million
read in the World.
blogs all over the World) has estimated
Since its launch in 2006 on the Internet
that Xu blog has welcomed at least 130
platform Sina, his blog has sparked off
million visitors. The actress publishes one
more than 300 million visits, so much so
or two texts a day that generate each time
that the American magazine Time put him
hundreds reactions.
among the 100 most influential persons in
Nevertheless, you won’t find any scoop in
the World, nearby Barack Obama and
that blog, because Xu merely describes her
Lady Gaga. Is that all?!



Once or two a week, he posts a biting idiot if you behave like an idiot.

notification that generates an avalanche of You want to beat French people,

commentaries. He mentions the corruption, don’t you? Then, first try and beat

the elite ignorance, the censorship, the Sebastien Loeb in a rallye contest,

flaws of the Chinese educational system, this would be grand for China!”

and became famous thanks to his bitter

spirit and his very sarcastic tone. COMPETITION
The introduction of the notion of
This Shanghai born in the « Digital
individualism has also introduced the
Natives » generation has become for many
notion of competition. In a country with
the non-official voice of the « post-80’s »
1.3 billion people, one has very few
generation, as we call those who were born
chances to stand out. However, China’s
after the economic reforms. These
forefront role and its economic
admirers of the Web even call him “The
development has favoured the Chinese’s
young Master Han”.
thirst for recognition and pride (one only
Few extracts of his posts:
has to observe how the newly rich Chinese
- At the crack of dawn of the Beijing
like to show their wealth in the streets of
Olympic Games, he discloses the
Shanghai).
physic standards asked for the
Besides, the Internet is the best means to
women who hand medals over to
reach a good social level. Because on the
winners, which will make a fool of
one hand it reflects a certain spontaneity
the local aerial C.I.O.
and on the other hand it spreads
- Protesting against the Dalai Lama
information with an outstanding speed, the
visit in France, nationalists attacked
Internet is a window upon the World and it
Carrefour shops. “You are not
propels one up the social ladder. One only
going to prove that you are not an
needs a blog’s post a song or a video of


Internet in China - The Great Digital Wall

Internet in China - The Great Digital Wall

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Ähnlich wie Internet in China - The Great Digital Wall

Ähnlich wie Internet in China - The Great Digital Wall (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Internet in China - The Great Digital Wall