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China Briefings

Reports on China issued by Samsung Economic Research Institute

China Business Intelligence No. 128

China Business Intelligence No. 128

Samsung Economic Research Institute Beijing Office

Aug. 6, 2009

Download China Business Intelligence No. 128 PDF email Print

Highlights:

I. Economy

In cooperation with China Mobile, China Satellite Mobile Broadcasting Corp. (CBC) recently launched the mobile TV service, TD+CMMB (China Multimedia Mobile Broadcasting). CBC is using the CMMB network technology as a stepping stone to enter the telecommunications market. There are currently CMMB networks in 180 cities in China and plans are underway to construct an additional 157 network by the end of 2009. As it advances into the telecommunications market, CBC has focused all its efforts on expanding its customer base and distribution channels. Trial stores were set up around China and used as distribution channels. Plans are underway to increase the number of stores to 1000 by 2010.

II. Industry

AliPay, an escrow platform developed by the Alibaba Group, is growing at a remarkable pace with the number of users estimated at about 200 million. It overtook its biggest rival PayPal, emerging as the world's largest escrow platform. Escrow payment is increasingly being accepted by Chinese consumers along with the rapid development of e-commerce. Adding more fuel to this trend is that an increasing number of traditional offline businesses are jumping on the e-commerce bandwagon. Amid the expansion of the online transaction market in China, the demand for the escrow service is increasing as the necessity grows to guarantee the credibility of sellers. China's online payment market shot up to 274.3 billion yuan in 2008, up 181% from a year earlier, and is expected to reach 1.26 trillion yuan in 2011.

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