Wiring the non-Western worldThe first Hong Kong-based Internet company to be listed on Nasdaq, chinadotcom corporation is breaking barriers in more ways than one. It aims not only to be the primary pan-Asian web portal, but also to help jump-start the Internet economy in Asia by providing seed money, web design, and e-commerce services to Asian e-startups. Based in Hong Kong, chinadotcom's first incarnation was as the China Internet Corp., established by computer scientist (and Hong Kong native) James Chu in 1994. By partnering with Xinhua News Agency, the state-run Chinese media outlet, Chu shrewdly guaranteed his company implicit government sanction - a move particularly important in a country intent on maintaining tight control over the flow of information from the Internet to its citizens.
Just like Yahoo! (filters included)
The corporation is divided into three different business units offering Internet services. Chinadotcom distributes content as a portal to screened Asian web sites - no pornography or anti-Communist material here. The site is separated into china.com, hongkong.com (both offered in English, as well as Chinese), taiwan.com, and cww.com (only in Chinese). These sites are further broken down into channels, including Arts & Humanities, Government, and Sports & Recreation, each of which features a number of Asian web sites. Through its subsidiary Web Connections, the chinadotcom corporation also builds e-business strategies and solutions, while 24/7 Media Asia sells services through online advertising. All told, the company has more than 1,300 employees in 24 offices across 10 Asian markets, with 12 offices and more than 350 employees in mainland China itself.
WTO membership a boon
In November 1999, China's entrance into the World Trade Organization meant new opportunities for chinadotcom. Before that time, foreign companies were only allowed to own a small stake in Chinese telecommunications and Internet companies. The agreement, however, stipulated that foreign companies could own up to 50 percent of Chinese e-companies, sending chinadotcom's stock skyrocketing. Rumors that America Online, already a 10 percent owner, was interested in purchasing a greater share further boosted the company's profile.
In December 1999, CEO Peter Yip announced that chinadotcom had invested $10 million in a program to help small and mid-sized companies start e-businesses. Chinadotcom will invest approximately $1 million in each of 10 companies based in Hong Kong and the Chinese mainland. This is an example of one of three investment strategies practiced by the corporation. This first strategy, incubation of Internet start-ups, is run by the company's Jump Start program. The other strategies include acceleration to speed the growth of existing online services, and partnership with already established Internet companies. These strategies mesh well with chinadotcom's goal to establish the Internet in China and throughout Asia.
