The New Nation - Internet Edition

CHINA'S booming Internet population has surpassed the United States to become the world's biggest with 253 million people online despite government control on Web use. According to a recent AP report from Beijing, the latest figure on Web use at the end of June is a 56 per cent increase from a year ago. The China Internet Network Information Centre says that the share of the Chinese public using the Internet is still just 19.1 per cent, leaving more room for rapid growth. The United States had an estimated 223.1 million Internet users in June, according to Nielsen Online research firm. The Pew Internet and American Life Project puts US Online penetration at 71 per cent.

China's communist government encourages Internet use for business and education but tries to block access to web sites deemed pornographic or subversive. Web surfers have been jailed for posting material that criticises communist rule that violates vague national security laws. Beijing blocks access to Web sites run by dissidents, human rights groups and some foreign news media. Web surfers were blocked from seeing Google Inc's You Tube and other foreign sites with video footage of anti-government protests in Tibet in March. The same month, the Chinese government threatened to shut down 25 Chinese video sites and punish 32 others for violating new rules.

In financial terms, China's market lags those of the United States, South Korea and other economies. But online commerce, video sharing and other businesses are 'growing rapidly' and have raised 'millions of dollars from investors. The commercial boom has produced success stories such as games site Tencent.com and search engine Baidu.com which are competing with foreign rivals for local market share as Baidu.com earns profit that has soared 87 per cent to 265 million yuan equivalent to US $ 38.6 million during a year.