Ⅱ. Internet Businesses

(Ⅰ) Web2.0

1. Current Development of Web2.0 in China

Web2.0 is now developing vigorously in China with an increasing number of small and medium-sized websites flocking into the business. Figures from the China Internet Network Information Center (CNNIC) showed the number of websites in China rose to nearly 700,000 from December 2006 to December 2007, most of which were small and medium-sized websites and community service websites.

China's Web2.0 service is still at an early stage of development. But major Web2.0 businesses have all operated in China and are developing in line with China's national conditions. Typical SNS service websites include xiaonei.com and kaixin001.com, whose users are ballooning these days. China's HIPIHI, a virtual world product, provides Web life services similar to the U.S. Second Life. Yeeyan.com is a typical case of China's wiki service, and mainly engages in translation of various subjects, such as IT and economic study.

2. New Progress in Web2.0 Technology

The innovation and development of the Web2.0 application technology can be reflected in the following three aspects: sharing, gathering and repeated usage of application data based on the Internet; enhancing user participation and cooperation; and enriching users' experience. The technology development in the above-mentioned aspects has made the Internet more open and interactive and promoted participation. Web2.0 application innovation, which is people-oriented, collects users' wisdom and gives an impetus to UCC（User Created Content）development. The rich content of Web2.0 and close-to-life application have attracted more users and provided satisfying users' experiences. Based on socialized services, it also has promoted communication between users and the Internet, and spurred the innovation of cross-industry and crossapplication services.

3. Key Technology and Its Development Trend

Currently, major Web2.0 businesses with great impact include SNS (Social Networking Services), blog, RSS service and Mashup. In particular, Mashup integrates multiple business applications and SNS boasts vast social influence. Both are major applications of the Web2.0 technology for a period of time in the future. The key to Web2.0 application technology development lies in the repeated usage and collection of data and resources. Mashup, widget, and OpenAPI are the major propellants driving the innovative application of Web2.0.

In the future, Web2.0 application will act on spirit of users' participation, openness and convergence to gradually create a new application platform, encourage in-depth user participation, promote UCC (Users Created Content) and UCA (Users Created Application), build up social networks, and provide more intelligent Internet services to netizens, companies and the society as a whole. The Web2.0 application will be advanced to be more intelligent with technology integration, in-depth user participation, and more usage of data and resources.