China’s Web - A Growing (Alternative) Reality

This week’s Economist tries to shed some light on the habits of the 210 million internet users in China, a jump of more than 50% from last year’s figure, and one that will quickly surpass the United States’ (according to investment bank Morgan Stanley). The article offers a none-too-shocking glimpse at China’s world wide web, describing how the nation’s (still quite censored) virtual landscape “fills gaps and provides what is unavailable elsewhere, particularly for young people” -i.e., multi-player gaming, online communities, and pirated music and videos. They offer some statistics in support:

More than 70% of Chinese internet users are under 30, precisely the opposite of America, and there is enormous pent-up demand for entertainment, amusement and social interaction, says Richard Ji, an analyst at Morgan Stanley. Rich rewards await those entrepreneurial internet companies able to meet that demand and establish themselves in the market: margins for leading internet firms is 28% in China, compared with 15% in America. And internet companies’ share prices have shot up, with their collective market capitalization nearly doubling every year since 2003 to reach over $50 billion today.

As its title suggests, the article says Chinese internet users are seeking more of an “alternative reality” than their Western counterparts, where social networking and gaming dominate and e-retail and other government-controlled businesses must be a bit more creative to succeed. To be sure, Chinese youth are eagerly seeking social interaction through the web (if our Friday night spent in a completely packed Xiamen internet den is any indication). But among the hundreds of online communities keeping the kids occupied, we’re keeping our eye on the ones that offer something a bit more - like Neocha.com, which promotes offline as well as online interaction within its creative community - to shape a very malleable culture in New China.

The Economist - The internet in China: Alternative reality