According a recent market research study, Chinese Internet users are expected to increase from 96 million today to more than 200 million in 2007. Not a bad growth curve, but there are caveats aplenty...

Despite the size of this market, traditional internet e-commerce may not be profitable for some time. Five major barriers to e-commerce in China, as identified by Morgan Stanley, are: 1) poor credit/payment systems; 2) inefficient logistics/distribution channels; 3) a low level of trust in online payment methods; 4) a small installed base of PCs; 5) and low income levels.