Despite the downfall of many dotcom companies, officials and insiders expressed their confidence in China's Internet development at a two-day forum which opened Thursday.

The 2001 Beijing Internet Development Forum gathered top industrial officials and professionals.

Zhao Qizheng, minister of the information office under the State Council, said the world trend to apply more information technologies, characterized by the development of Internet, provides a good opportunity for China.

"Although the bubble of the Internet has burst, we cannot deny its potential,'' he said. "The beer is nice despite the foam.''

He said the Internet has a vast market in China.

The number of people accessing the Net in China is expected to hit 200 million by 2005, increasing dramatically from the 26.5 million estimated at the end of June this year.

Zhao said China's Internet industry should work with traditional industries rather than operate solely as an information carrier to individuals.

Lou Qinjian, vice-minister of the Ministry of Information Industry (MII), echoed Zhao's remarks and said the Internet should be an engine that propels the economy's development.

He said the government encourages the development of the Internet market.

"We will push for the growth of Internet-related services by lowering the threshold to enter the market and by promoting competition,'' he said.

He added that to guarantee the industry's healthy development, China will implement more regulations and encourage competition.

Chen Weiding, president of Intel's China operation, said he believes after the low ebb the Internet industry will bounce back.

"Our company will continue to invest in the sector, and China has large potential,'' he said.

(People's Daily 09/07/2001)