The diffusion of the Internet in China

https://arizona.aws.openrepository.com/handle/10150/289812

This dissertation examines how the Internet spread across China from the late 1990s into the early 2000s, during a period of explosive growth. Between 1999 and 2001, the number of Chinese Internet users jumped from 8.9 million to 22 million, making China one of the fastest-growing online populations in the world .

Using the Global Diffusion of the Internet (GDI) framework, the study analyzes six key dimensions of Internet adoption: pervasiveness, geographic dispersion, sectoral absorption, connectivity infrastructure, organizational infrastructure, and sophistication of use.

Key findings:

  • Government policy was the central driver. In 1996, China chose “state-coordinated competition,” allowing multiple state-owned entities to operate backbone networks instead of a single monopoly. This strategy accelerated infrastructure development while keeping control centralized.
  • Infrastructure grew rapidly, with world-class backbone networks and broad national coverage by the late 1990s.
  • Commercial and government use expanded quickly, with nearly all government agencies and most large businesses establishing websites, though many remained basic “brochureware” rather than interactive platforms.
  • Security and regulation were tightly controlled, with restrictions on content, censorship of sensitive topics, and prosecutions of online dissenters, highlighting the balance between growth and state control.
  • E-commerce adoption lagged behind infrastructure development. Many firms had not yet restructured their business models to fully leverage the Internet.
  • Provincial case study: Guangdong was one of the earliest and most advanced provinces, benefiting from its ties to Hong Kong and foreign investment.

The dissertation concludes that China’s Internet expansion was shaped by a mix of government coordination, rapid infrastructure investment, and selective openness, producing a unique pattern of growth compared with other nations. It highlights both the opportunities for modernization and the challenges posed by censorship, regulation, and uneven business adaptation

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