Abstract

Use of the Internet and telecommunications in China has exploded in the past decade, making it the most attractive telecoms market in the world. However, many foreign companies, eager to exploit this telecommunications boom, have seen their scope for involvement dogged by China's excessive state regulation, political control and relative economic backwardness. In this essay Chinadotcom, one of the first state‐sponsored Chinese web companies, argues that many of these criticisms are overstated. Economic, infrastructural and political constraints, the company contends, are all part and parcel of the developmental process. However, firms as well as the state are learning to cope with this new phenomenon and slowly adapting their indigenous practices to meet the challenge. In fact, the company concludes, given the right conditions, the potential for development in China is so vast that it could end up outstripping its major English‐speaking rivals.

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