The Sleeping Dragon: China and The Adult Internet
by Ed Rampell
Part Two: Dare to Struggle, Dare to Win!
Adult webmasters might reason: "Forget China!" However, according to Wolf Kring, CEO of 2000Charge (www.2000charge.com), which has started doing business in PRC, "The demand for X-rated material is even higher in China, because of its censorship laws. You can't buy magazines and stuff, like in Europe or the U.S., but the Internet gives lots of privacy and secrecy… China has an enormous potential." Figures from You've Got Dissent!, by researchers Michael Chase and Mulvenon for the Rand (www.rand.org) think tank, are intriguing:
"According to the China Internet Network Information Center, in October 1997, the People's Republic had 620,000 surfers. By January 2002, 33,700,000 Chinese were online.
"China's bandwidth (megabits/second) increased from 25 in October 1997 to 7,598 in January 2002.
"The number of computers connected to the Internet in China rose from 299,000 in October 1997 to 12,500,000 in January 2002."
China's The People's Daily "estimates that by 2005, the number of computers connected to the Internet will reach 40 million and Internet users will total 200 million." Wolf believes, "40 million are online right now." The Rand report notes PRC Web growth "has been virtually exponential and is expected to increase at geometric rates for the indefinite future." Although China's still largely agrarian, it's also the world's most rapidly developing nation - and most populous. China's 1.2 billion population alone, makes it interesting for webmasters.
Wolf is bullish on the 3.6 billion-strong Asian market that comprises 60% of the world's population, and 30% of 2000Charge's business. "After the U.S. and Japan, China has the third largest Internet population in the world," Wolf stresses. "Asia is expected to have the biggest Internet growth 2005-2010 and to bypass everybody…Yes, we definitely have Chinese users in our system, and they're a certain percentage of total sales already. We have Japanese and Korean systems, and lately, we're looking into China... which is next… So our people are doing research, which is required before starting a new system," asserts the future-focused CEO.
2000Charge is a Los Angeles-based global payment solution provider; almost half of its 25 employees are Asian and speak Asian languages. The firm provides alternative payment systems in Europe and Asia, specializing in consumers without credit cards. Solutions include bank account-based debit and ATM card systems. "We have our own priority AVS fraud protection systems, so unlike major U.S. credit card companies, we allow many regular credit cards that would normally be declined… Mshost.net is our hosting division," says German-born Wolf, who's been involved with hosting and e-commerce since 1995.
In 1999, AP reported when China joined the World Trade Organization, foreigners were allowed to own up to 50% of Chinese Internet ventures. Singapore-based LatelineNews reported in 2002 that Asia's e-adult appetite is vast: 715,700 Hong Kongers downloaded cybersex, averaging 73 minutes per surfer. Chase says, "At Chinese Internet cafes, if you check the history folder or under favorites in a Web browser, it's clear people found plenty of adult entertainment sites - Japanese, European, and American - that weren't blocked… and can be readily viewed… Adult DVDs and CDs can be bought underground in shops…There're so many adult Web sites accessible to China's population they can never block them all."
Wolf adds, Hong Kong - which Britain recently returned to China, with a special administrative status - is "more open" than Mainland China. Portugal returned Macao to the PRC in 1999, and major gambling interests are investing in Macao, long known for casinos and prostitution. "I'd guess Macao is comparable to Hong Kong," in terms of greater 'Net openness. Mainland regions such as Shanghai are zoned for foreign investment. Taiwan, or the Republic of China, is not PRC-administered, and has "an open information environment," says Chase.
Part One: The Great Firewall of China
Part Two: Dare To Struggle, Dare To Win!
Part Three: Serve The People
Part Four: Political Power Grows Out of the Barrel of a Computer
Part Five: Let 100 Flowers Bloom
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