Guests, ladies and gentlemen,

Welcome to APEC E-Commerce Fair High-Level Symposium cum the First APEC E-Commerce Business Alliance Forum. On behalf of Ministry of Commerce (MOFCOM) of the People's Republic of China, I would like to congratulate on the convention of the forum. The theme of this forum is "E-enterprise - The Cornerstone of E-Commerce Development". The aim is to look into a new strategy and new model for the development of e-commerce. This will enhance the cooperation among members of APEC through e-commerce and promote local application of e-commerce, playing an active role in the promotion of continuous economic growth and mutual prosperity of Asia Pacific region.

E-commerce is the application of information technology in commercial activities. As a modern way of information flow, e-commerce is not restricted by time and space. It also has the special features of high efficiency, low cost and wide scope. Its role in commercial activities becomes more and more important. According to the statistics of the United Nations Conference on Trade and Development, the number of transactions via e-commerce globally in 2003 is 69% more than that of 2002. It is expected transactions via e-commerce will amount to 18% of commodity sales in the world in 2006. According to the statistics of the Department of Commerce of the US, the country's annual revenue from e-commerce in 2003 increased by 26.3%. The development of e-commerce has just begun.

The China Government recognises the importance of e-commerce development. In the 36th meeting of the CPC Central Committee, it was clearly pointed out that "[we should] promote both internal and external opening of the market, speed up the marketisation of essential prices, develop modern modes of information flow such as e-commerce and logistics, and promote the free flow and fair competition of commodities and other products in the whole country". This is a clear direction to the development of e-commerce in China.

Enterprises are the subject of e-commerce; market demands and benefits are the drives for the development of e-commerce. With economic development and advancement in information technology, the demands for e-commerce by China's enterprises are increasing. Although China's e-commerce technology is still lagging behind some of the technologically advanced countries, its transaction quantity increases with the growth of China's market. More and more enterprises now make use of e-commerce.

Ministry of Commerce of the People's Republic of China highly recognises the development of e-commerce. It grasps three integration tight: first, integration of commercial theories and practice; second, integration of the construction of an e-commerce environement and its application by enterprises; and third, integration of cross-border e-commerce co-operation and exchange. We will focus on the promotion of enterprise application, construction of an e-commerce environment and external co-operation and exchange. With the hard work of various parties, the standard of e-commerce is increasing:

1. Continually increased application by enterprises

China has the essential basis in terms of basic facilities, professionals and technology, and application. Its exploration of e-commerce is getting deeper. As of 2003 year end, the number of internet users in China has reached 80 million and the number of internet servers 30.89 million. Various nation-owned, citizen-owned and foreign-invested enterprises have established some information system to accommodate internal ERP management and actively developed sales and purchases on the Internet, supply chain management and customer relations management. According to a survey conducted by MOFCOM, such advancement among China's enterprises in 2003 was 1.2 times of that of the previous year. 65% of the enterprises surveyed believe e-commerce is necessary for their business developments; 41% have already had different kinds of e-commerce activities; 40% has developed e-commerce activities via some e-commerce business websites.

Enterprises in China apply e-commerce in a number of different ways - online business exhibition, cross-projects discussion, e-commerce business websites, etc. Many e-commerce business platforms have their own characteristics. Enterprises expand their markets through online exhibition, online discussion, online sales and online transaction. New developments like online shopping, online auction and online purchase have made large progress.

Since the 93rd Chinese Export Commodities Fair during the SARS period, MOFCOM has suggested the Fair should be organised as one with e-commerce features. Organisations such as China International Electronic Commerce Centre, China Foreign Trade Guangzhou Exhibition Corporation, China Mechanics and Electronics Import and Export Association have been enhancing their e-commerce related services. In the 95th Forum held in April this year, the accumulated hitting rates of the three organisations' e-commerce websites were over 76 million in 15 days, an increase of 21.9% from the previous year. Of these, 24.12 million, which was 31.73% of the total, were from foreign countries. The accumulated amount of online transactions was USD 381 million (with intended transactions of USD 297 million and confirmed transactions of 83.81 million), an increase of 3.8% from that of the previous year.

2. Establishment of an e-commerce environment

Recognising the fast development of e-commerce application, MOFCOM is working out the "White Paper on China's E-Commerce" in order to establish an e-commerce environment and related policies and guidances. Based on the principles of "accuracy, comprehensiveness and authority", the paper narrates and analyses the infrastructure, establishments and development of China's e-commerce in 2003.

On 24 March this year, the 45th meeting of the Standing Committee of the State Council has passed "The People's Republic of China Electronic Signature Bill". The Bill has now been submitted to the National People's Congress for approval. This legally binding Bill has for the first time confirmed the legal status of digital signiture, offering legal proctection to e-commerce.

Credibility is necessary for e-commerce. MOFCOM is actively trying to help establish a social credit system and enhace supervision, coupled with comprehensive regulations and innovative mechanisms, so as to encourage transactions with credibility and reduce transaction risks. It is believed that with a credibility mechanism with the industry and an enhancement of the concept and self-discipline, information management will be appropriately regulated step by step.

To commence e-commerce trial projects, it is better to start with industries and regions with well-established basis for information technology. We should develop e-commerce trials, learn from experience, encourage exchanges and promote those approaches which are proved feasible.

3. Enhancement of exchanges with external parties

(1) To enhance cooperation between the Government and MOFCOM, APEC e-Commerce Business Alliance was established in August 2001. The Alliance aims at enhancing communications between various economic entities and governmental departments, and providing practical solutions to and suggestions on information technology and paperless commercial technology development and application for enterprises.

APEC e-Commerce Business Alliance is an effort made by China to participate in regional e-commerce development and promote business within the Asia Pacific. The establishment of the Alliance provides conditions for the development of e-commerce and paperless transactions by its members. It also provides a channel for APEC members to have a better understanding on practical demands and suggestions regarding e-commerce.

(2) To explore actively how to make use of modern information technology to establish local and foreign commercial cooperation website, paving a new road for further cooperations.

"China-Russia Economic and Commercial Cooperation Website" co-established by the Governments of the two nations will be launched in September this year. This is the first commercial website established by our Government with foreign governments. Learning from the experience, the Government is going to establish similar websites with other business partners so as to encourage further commercial cooperations by means of information technology.

(3) To participate actively in e-commerce related activities in international organisations such as Asia-Pacific Economic Cooperation (APEC), Asia-Europe Meeting (ASEM), Association of Southeast Asian Nations (ASEAN) 10+3, with a view to understanding the development of e-commerce in different parts of the world.

(4) To start e-commerce business in the US, Japan, Korea, Canada and so on under certain kind of commercial cooperation mechanism, and to develop e-commerce with Hong Kong and Macau following the principles of CEPA.

(5) To participate actively in activities related to legislation in international committees such as United Nations Commission on International Trade Law and United Nations Conference on Trade and Development.

Ladies and gentlemen and friends.

Nowadays, e-commerce, as a modern and advanced way of communications, has already become an important part of social and economic development. We believe that with the continuous development of information technology, cooperations between China and other Asia Pacific regions concerning information technology and e-commerce will be widened. This will certainly contribute greatly to the co-development of the nations and the Asia Pacific as a whole. Let us work hands in hands for the economic development of the Asia Pacific regions!

I wish the First APEC E-Commerce Business Alliance Forum will be a great success!

Thank you very much!