Ladies and Gentlemen,

As countries around the world take measures to combat the financial crisis, our meeting, here in Beijing, to discuss cooperation between the Internet industries of China and Britain is of particular significance. I am delighted to have the opportunity to talk to our honored guests on the topic of "Obligations and Opportunities Facing Internet Businesses in the New Economic Context."

My presentation will include three parts:

1. The Internet industry is on the threshold of unprecedented opportunities

The impact of the global downturn has spread from China's export sector to parts of the domestic economy such as real estate and the auto industry. But the domestic Internet business has retained its vitality, growing more than 20 percent in 2008 to reach a total value of 138.99 billion yuan.

At the end of last year, China had 338 million Internet users, the highest number in the world. The country's Internet penetration rate of 22.6 percent surpassed the global average of 21.9 percent. And it is not only the raw numbers of net users, but also the amount of time they spend online, that underlines the huge influence of the Internet in China.

The rapid growth of the Internet market is the result of several factors: First, vigorous promotion of the Internet by the government means China's Internet infrastructure has been constructed very quickly; broadband is being rapidly popularized along with Internet access from both computers and mobile phones. Second, the general public has quickly accepted the Internet, and people become willing to use the Internet to make purchases. Third, Internet industries have matured and become profitable. Fourth, traditional enterprises have accepted and make a large use of the Internet.

Following the Internet bubble of 2000, China was left with around 30 listed Internet companies covering the areas of e-commerce, Internet advertising, search engines and online games. With a market of more than 300 million users, China's Internet businesses face opportunities that far outweigh the challenges.

Take e-commerce as an example, e-commerce has become a lifeline for small and medium-sized enterprises (SMEs) in the financial crisis, because of its global reach, convenience and cost effectiveness. Chinese SMEs are using e-commerce to reach markets as far away as the Middle East, Europe and South America. E-commerce is now unquestionably the most effective tool for SMEs to explore new markets.

Alibaba, a home-grown Internet company offering B2B services to SMEs and entrepreneurs, is expanding rapidly. In 2008 the number of registered users and online stores on Alibaba increased by 10.5 million and 1.7 million, respectively. Enterprises in China and around the world are choosing e-commerce as a way to reduce costs, improve efficiency, and tap new business opportunities in these difficult economic times.

We believe the Chinese economy will continue on a path of vigorous expansion. Government measures to boost investment, expand domestic demand and promote exports will ensure China maintain a relatively high growth rate in 2009. And this, in turn, will mean more opportunities for Internet businesses.