network and financial linkage. Internet businesses are also losing money due to exorbitant charges for telephone lines, an uncertain regulatory environment, and direct competition from the telecommunications operators dominating the market. Nonetheless, the high growth potential of the two sectors is still well recognized by foreign multinationals. Despite China's manifest prohibition of foreign involvement, foreign companies have managed to enter the Chinese market by forming strategic alliances with domestic concerns. It appears that China prefers a smooth and orderly process of market opening based on a more effective regulatory regime such as licensing arrangements. This book is intended for readers interested in China's Internet and e-commerce sectors. Businessmen, corporate planners, business associates, researchers, engineers, technologists, academics and students interested in these industries will find the book useful. Focusing on China's nascent Internet and e-commerce industries, this book presents the historical development, current market status and future growth, as well as discusses the problems and issues facing the two sectors.