China: Web use accelerates, e-business still lagging

[Editor’s Note: Silicon Valley venture firms and technology companies have been active in China for years, but with mixed results. Domestic search company Baidu has beat out Google for much of the market, local social networks like tencent.com and Xiaonei appear to have the upper hand over international competitors like MySpace and Facebook. Similar trends can be seen across most segments of online Chinese markets. Where does that leave e-commerce in the country? George Godula, Markus Fuhrmann and Michael Hohenwarter, from a China based market expansion service provider called  Web2Asia, have been studying the question. This is the first in a three-post series from them on the state of the internet market in China.]