Statistical Report on Internet

Development in China

(July 2009)

China Internet Network Information Center

China Internet Network Information Center (CNNIC) 24th Statistical Report on Internet Development in China

Contents
REPORT SUMMARY ..............................................................................4

CHAPTER I INTRODUCTION OF SURVEY .....................................6

I. SURVEY BACKGROUND ...................................................................................................................... 6
II. REPORT TERMS ................................................................................................................................. 6
III. SURVEY METHODS .......................................................................................................................... 7
IV. REPORT INNOVATION ..................................................................................................................... 10

CHAPTER II NUMBER AND STRUCTURAL

CHARACTERISTICS OF INTERNET USERS ................................. 11

I. NUMBER OF INTERNET USERS .......................................................................................................... 11
(I) Overall Number of Internet Users ........................................................................................... 11
(II) Number of Broadband Users .................................................................................................. 12
(III) Number of Mobile Internet Users ......................................................................................... 14
II. STRUCTURAL CHARACTERISTICS OF INTERNET USERS ................................................................... 15
(I) Sex Structure ............................................................................................................................ 15
(II) Age Structure .......................................................................................................................... 16
(III) Education Structure .............................................................................................................. 17
(IV) Occupation Structure............................................................................................................. 18
(V) Income Structure ..................................................................................................................... 18
(VI) Urban and Rural Structure ................................................................................................... 19

CHAPTER III BASIC INTERNET RESOURCES ............................21

I. OVERVIEW OF BASIC RESOURCES .................................................................................................... 21
II. IP ADDRESS .................................................................................................................................... 21
III. DOMAIN NAME.............................................................................................................................. 22
IV. WEBSITE ........................................................................................................................................ 23
V. INTERNATIONAL OUTLET BANDWIDTH ........................................................................................... 23

CHAPTER IV INTERNET ACCESS ...................................................25

I. ACCESS PLACES ............................................................................................................................... 25
II. ACCESS EQUIPMENT ....................................................................................................................... 25
III. ACCESS MODES ............................................................................................................................. 26
IV. ONLINE TIME ................................................................................................................................. 27

CHAPTER V INTERNET APPLICATIONS ......................................28

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I. MAJOR INTERNET APPLICATIONS ..................................................................................................... 28

II. SURVEY ON HOT INTERNET APPLICATIONS ..................................................................................... 32
(I) Network Security ...................................................................................................................... 32
(II) Internet Agricultural Information ......................................................................................... 34

CHAPTER VI STUDY OF MOBILE ACCESS ..................................36

I. NUMBER AND STRUCTURAL CHARACTERISTICS OF MOBILE INTERNET USERS ................................ 36
II. MOBILE APPLICATIONS ................................................................................................................... 38
III. EXPECTATION OF 3G MARKET AND ANALYSIS OF INFLUENTIAL FACTOR FOR MOBILE ACCESS ..... 39

CHAPTER VII STUDY OF INTERNET LIFESTYLES ...................43

I. GENERAL ANALYSIS ......................................................................................................................... 43
II. INTERNET TRUST ............................................................................................................................ 44
III. INTERNET INTERACTION ................................................................................................................ 45
IV. INTERNET RELIANCE ..................................................................................................................... 47

CONCLUSION .......................................................................................50

ANNEX 1 TABLES OF BASIC INTERNET RESOURCES..............51

ANNEX 2 SURVEY SUPPORTING UNITS ........................................59

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China Internet Network Information Center (CNNIC) 24th Statistical Report on Internet Development in China

Report Summary
 By June 30, 2009, the number of Chinese Internet users and the Penetration rate of the
Internet had reached 338 million and 25.5% respectively. The number of Internet users
increased by 40 million compared with late 2008, up 13.4% within six months, and the
increase in the number of Chinese Internet users remains robust.

 The number of broadband users had reached 320 million, accounting for 94.3% of all
Internet users. In spite of the high Penetration rate of broadband, China is far behind the
countries developed in the Internet in terms of broadband access speed.

 The number of Chinese Internet mobile Internet users was 155 million, accounting for 45.9%
of all Internet users, and the number of mobile Internet users exceeded 37 million within six
months. 28% of the existing mobile Internet users said they would access the Internet by 3G
mobile phone in the coming six months; 7.25% of the users that have not accessed the
Internet by mobile phone said they would probably access the Internet by 3G mobile phone
in the coming six months.

 The number of rural Internet users had reached 95.65 million, 14.8% of whom visited rural
or agricultural websites over the past six months. Farming, forestry, animal husbandry and
fishery laborers using rural or agricultural websites accounted for 42.7% of all Internet users.

 The increase in China’s basic Internet resources slowed down. The increases in the number
of IP addresses, international outlet bandwidth and number of websites were significantly
lower than those in 2008, the number of domain names fell slightly, but the proportion of
domain names linked to live websites increased remarkably.

 82.4% of Chinese Internet users installed security software in the most frequently used
computers. Nonetheless, China’s network security was still unoptimistic, and 195 million
Internet users were attacked by viruses and Trojan horses online within six months, and the
accounts or passwords of 110 million were stolen.

 The proportion of Internet users accessing the Internet for entertainment, information and
communication purposes was high. Except for forum/BBS, the penetration rate of all the
three Internet applications by Internet users was over 50%, and the utilization rate of
transaction-type Internet applications like online shipping and online payment was relatively
low.

 Entertainment application tended towards stability after fast growth, and all
sub-divisional applications differed in use rate. The number of online game players
increased by 30 million within six months with a use rate of 64.2%, up 1.4%. Online
music application remained ahead within six months, with an increase of 16.1% in the
number of users and an increase of 1.8% in use rate. The number of Internet video users
continued increasing to 10% within six months with a decrease of 1.9% in Penetration
rate.

 The use rate of information application rose. Search engine and Internet news accounted
for 69.4% and 78.7% respectively, up 1.4% and 0.2% from late 2008.

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 The number of communication application grew continuously, with use rate dropping
lightly. The use rate of email and instant messaging stood at 55.4% and 72.2%
respectively, down 1.4% and 3.1% from late 2008. The number of blog users reached
181 million with a use rate of 53.8%, down 0.5% from late 2008.

 The use of transaction application was of low level and relatively backward. The
number of online shoppers picked up from 74 million to 87.88 million with an increase
of nearly 14 million amid the current economic situation; affected by the economic
actuality, the number of users reserving travel online slipped slightly from late last year;
the number of users making payment online climbed to 23.7 million within six month
with an increase of 4.8% in use rate.

 The Internet plays a prominently positive role in information acquisition, interpersonal

communication, social participation, practical life convenience and other respects, but is
prone to isolating Internet users away from the reality to probably cause some mental
problems.

 Social participation: the Internet is playing a more and more important role in
promoting people to participate in social activities, and the number of Internet users
participating in social activities through the Internet rose by 4.8% within six months.

 Interpersonal development: human association is developed in the Internet era, and

interpersonal relation becomes closer. Nearly 90% of Internet users recognized that the
Internet had cemented relations with friends, up 4.5% within six months.

 Internet share: 78.5% of Internet users often shared knowledge with others. The
behavior of mutual help is conductive to promoting knowledge dissemination,
increasing production and life efficiency and creating a healthy and positive Internet
environment.

 Life aid: 81.6% of Internet users recognized that handling affairs online saved much
time, and 77.5% thought that life was inseparable from the Internet, which has penetrate
into all respects of people’s livelihood.

 Social isolation: the Internet gradually widened the distance of soul exchange, namely
worsened social isolation. Low-age Internet users felt a higher sense of social isolation
due to the Internet.

 Internet addiction: about one out of six Internet users was inclined to Internet
addiction, especially those with a net age of less than a year.

 Information trust: 84.3% of Internet users believed the Internet to be the most
important information channel.

 Transaction trust: Internet users have low trust in online transactions, with only 29.2%
recognizing the security of online transactions.

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Chapter I Introduction of Survey

I. Survey Background
The number and structural characteristics of Chinese Internet users, basic Internet resources,
conditions for Internet access, Internet applications and other information are of great significance
for the State and enterprises to keep up to date with Internet development and make decisions. In
1997, the state competent authorities made a decision that China Internet Network Information
Center (CNNIC) performed the statistical work in combination with the then four Internet units
through deliberation, and published the 1st Statistical Report on Internet Development in China in
November same year. To regularize and systemize the work, from 1998, CNNIC periodically
published the report in January and July every year. After being published, the report received
great attention from all sides and was extensively quoted both at home and abroad. This is the 24th
survey.

The work was strongly supported by state competent authorities like the Ministry of Industry and
Information Technology, with the assistance of all Internet units, the websites supporting the
survey and the media, thus ensuring the smooth progressing of the survey. We would hereby
extend our heartfelt thanks to them for their strong support.

II. Report Terms

◇ Internet user
All Chinese citizens aged six or above that accessed the Internet over the past six months.

◇ Broadband user
All users that accessed the Internet by broadband means over the past six months, including
xDSL, cable modem, fiber access, PLC, Ethernet, etc.

◇ Mobile Internet user

All users accessing and using the Internet by mobile phone over the past six months,
including but not limited to those accessing the Internet by mobile phone.

◇ Rural user
All users that mainly resided in the countryside over the past six months.

◇ Urban user
All users that resided in cities over the past six months.

◇ Teenage user

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All users aged below 251.

◇ IP address
IP addresses, which identify online computers, servers or other equipment in the network, are
basic Internet resources. Only with IP addresses (in any form) can the Internet be accessed.

◇ Domain name
Domain names, which refer to English domain names only in this report, are strings split by
dot and made up of figures, English letters and hyphens, and hierarchical Internet address
identities corresponding to IP addresses. Common domain names fall into two categories: one
is country code top-level domain (ccTLD), for example, a domain name ending with .CN
represents China; the other is generic top-level domain (gTLD), such as domain names
ending with .COM, .NET and .ORG.

◇ Website
Websites refer to those with domain names or “www. + domain names” as URLs, including
those under China’s top-level domain .CN and generic top-level domain (gTLD), and the
registrants of the domain names are in the territory of China. For example, there is only one
website for domain name cnnic.cn, and the corresponding URL is cnnic.cn or www.cnnic.cn,
besides, other URLs ending with the domain name like whois.cnnic.cn and mail.cnnic.cn are
only deemed different channels of the website.

◇ Survey scope
Unless expressly specified, all data in this report refer to those of the Chinese mainland, with
the exception of Hong Kong, Macau and Taiwan.

◇ Deadline for survey data

The deadline for the survey data is June 30, 2009.

III. Survey Methods

(I) Phone Survey
3.1 Survey Population
Permanent residents aged six or above with residence fixed-line phones (home phone, PHS and
dormitory phone).

3.1.1 Sample Scale

Among the 30,000 survey samples, there are 15,000 residence fixed-line phone subscribers and
15,000 mobile phone subscribers, covering 31 provinces, autonomous regions and municipalities
1
The World Program of Action for Youth to the Year 2000 and Beyond adopted at the 50th UN General Assembly
on December 14, 1995 defined the age group of 15 to 24 as teenager group, while this report defined the group
aged 6 to 24 as teenager group.

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on the Chinese mainland.

3.1.2 Subdivision of Survey Population

Study population

A C B
Group Group
Group commonly covered
covered by covered by by
fixed-line fixed-line mobile
phone and
phone phone
mobile phone

The survey population is divided as follows:

Group A: group covered by residence fixed-line phone, including residents covered by fixed-line
phone, PHS subscribers, school dormitory phone subscribers and subscribers to other dormitory
phones;

Group B: group covered by mobile phone;

Group C: group commonly covered by mobile phone and residence fixed-line phone (the
superposition of group covered by residence fixed-line phone and group covered by mobile phone
is Group C), C=A∩B.

3.2 Survey Content

This survey focuses on the number and structural characteristics of Chinese Internet users,
conditions for Internet access, Internet applications, Internet users’ attitude towards the use of the
Internet and condition of non-Internet users. The survey content includes whether respondents
access the Internet, respondents’ background, Internet users’ online behaviors, Internet depth,
Internet experience, etc.

3.3 Survey Method

The survey was conducted through the Computer Assisted Telephone Interviewing System (CATI)
from June 1 to 30, 2009.

3.4 Difference between Survey Population and Target Population

CNNIC studied the group that could not be covered by telephone in late 2005 and discovered that
the number of Internet users in the group was small. With the development of China’s telecom
industry, the number of the group is gradually decreasing (the number of Chinese telephone
subscribers was 744 million by late 2005, while the figure rose to 1.018 billion by late May 2009).
Therefore, the survey study has a hypothesis, namely:

In this study, the Internet users that cannot be covered by telephone are negligible.

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(II) Online Survey

The online lays emphasis on the facts of typical Internet applications. CNNIC conducted an online
survey from June 5 to 30, 2009. It put the questionnaire on its websites, linked it to government
and media websites, large ICP/ISP websites around the country as well as information ports of all
provinces for voluntary completion by Internet users, and tested the validity of the collected
questionnaires by technical means to screen out invalid ones. A total of over 57,000 effective
questionnaires were collected in the online survey.

(III) Online Automatic Search and Statistical Data Reporting

Online automatic search is mainly aimed at technical statistics of indicators like number of domain
names and websites and geographic distribution, and the statistical data reported mainly includes
the number of IP address and international outlet bandwidth.

1. Number of IP Addresses
The statistical data of IP addresses by province are from the IP address databases of Asia-Pacific
Network Information Centre (APNIC) and CNNIC. The data by province may be acquired by
totaling the data in the two databases that have been registered and can recognize the provinces
where the addresses are located. As address assignment is dynamic, all statistical data are for
reference only. Meanwhile, the Ministry of Industry and Information Technology, the state
competent authorities of IP addresses, will also require the Chinese units assigning IP addresses
(such as China Telecom) to report the number of IP addressed owned by them once six months. To
ensure the accuracy of IP data, CNNIC will compare and verify the statistical data from APNIC
and the reported data to determine the final number of IP addresses.

2. Number of Chinese Domain Names and Number of Chinese Websites

The number of Chinese domain names and the number of Chinese websites are the sum of the two
parts of data as follows:

The first part is the number of .CN domain names and websites acquired by CNNIC through
online automatic search; the second part is the number of Chinese generic top-level domains
(gTLD) and websites provided by various domestic top-level domain registration units. These data
include the number of all generic top-level domains (gTLD) and the opened websites under the
domains; the number of generic top-level domains (gTLD) and websites by .COM, .NET
and .ORG; as well as the number of generic top-level domains (gTLD) and websites by the
provinces where registration units are located.

3. International Outlet Bandwidth

The Ministry of Industry and Information Technology periodically acquired the total outlet
bandwidth of Chinese operators linked to other countries and regions through telecom enterprises’
statement systems. The Statistical Report on Internet Development in China has included these
reported data.

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IV. Report Innovation

1. Refined Study of Internet Lifestyles
Describe the most important Internet lifestyles of Chinese Internet users from the perspectives of
Internet trust, Internet interaction and Internet reliance, analyze the recognition of Internet users’
information trust, transaction trust, social participation, interpersonal influence, Internet share, life
aid, social isolation and Internet addiction, and study the changes to people’s psychology and
behavior brought by the Internet.

2. Mobile Access
Describe the number and structural characteristics of mobile Internet users, analyze the
characteristics of Internet applications by the users, summarize the influential factors for mobile
access, and solicit the users’ intention to access the Internet by mobile phone (3G mobile phone)
in the future.

3. Network Security
Network security has become a nationwide and social focus, which is not only related to the
security guarantee of national networks and information, but also the information and transaction
security of individual Internet users in daily life, therefore this report conducted a special survey
on network security, inquired of Internet users about security events like virus, Trojan horse attack
and number stealing, and surveyed the installation of security software.

4. Internet Agricultural Information

With the improvement in the construction of rural information infrastructure and the gradual
increase in the level of rural informatization, the agricultural information platform has been
established progressively, and it is necessary to conduct a survey on Internet agricultural
information to find out use of rural and agricultural information by Internet users. This time, we
surveyed and analyzed whether Internet users visited agricultural and rural websites and what kind
of information they acquired from such websites.

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Chapter II Number and Structural

Characteristics of Internet Users
I. Number of Internet Users
(I) Overall Number of Internet Users
By June 30, 2009, the number of Chinese Internet users had increased continuously to 338 million,
up 13.4% from late 2008, and the Penetration rate of the Internet had risen steadily to 25.5%.

0,000

Number of
Internet Penetration rate of the Internet
users

Fig. 1 Number of Internet Users on the Chinese Mainland and Penetration Rate of the
Internet

The outbreak of the US financial crisis in 2008 had little impact on Internet development in China,
where the first half of 2009 saw the steady increase in the number of Internet users. The fast
growth of the number of Internet users is attributable to the following factors:

Firstly, guided by a series of state policies like the National Strategy for Information Development
from 2006 to 2020 and “Eleventh Five-Year Plan” for Informatization of National Economy and
Social Development, governments and relevant institutions in all areas input a large amount of
money and manpower in the construction of network infrastructure and the establishment of
information service platforms to meet people’s needs for Internet access. The number of Internet
users and level of Internet application is not only an indicator for local Internet development, but a
sign of integration of informatization with industrialization.

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Secondly, with progress in industrial technology, recombination of network operators and the
intensification of competition, the software and hardware environment of Internet access is
optimized constantly. The Penetration of 3G technology facilitates the use of mobile phone as
network terminal. Meanwhile, the constant decrease in the prices of Internet access and users’
terminal products, as well as the continuous improvement in product performance and user
experience constantly lower the threshold of Internet access.

Lastly, the public accesses the Internet actively. With social and economic development, people’s
living standards have been improving continuously. After material needs are satisfied to some
extent, social communication and information acquisition have been critical to spiritual life.
Modern interpersonal communication is more indirect, and the Internet, as a media and
communication means, fills the gap in people’s information and social communication in daily life.
Additionally, a large number of migrant workers returned home amid the financial crisis, whose
understanding of and familiarity with the Internet was extended to the people around them, and the
multiplier effect of interpersonal messaging also raised rural people’ awareness and behavior of
accessing the Internet.

Now, the number of Chinese Internet users is rising continuously, but compared with the countries
developed in the Internet, China is still low in Internet Penetration and has not taken full
advantage of network informatization. However, with the fast growth of the national economic
entity and the constant improvement in network infrastructure, the Penetration rate of the Internet
will pick up.

Korea
USA
Japan
Brazil
Russia
China
India
World average level

Fig. 2 Internet Penetration in Some Countries

(II) Number of Broadband Users

The number of broadband users increased continuously, by June 2009, 320 million users had

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accessed the Internet by broadband, accounting for 94.3% of all users and up 3.7% from late 2008.

0,000

Fig. 3 Comparison in Number of Broadband Users on the Chinese Mainland

According to the statistical results, the Penetration rate of broadband in China has been very high.
However, we must be clearly aware that the broadband users mentioned here are only those
accessing the Internet by broadband instead of being defined and differentiated by network
transmission speed.

According to the statistics of the Organization for Economic Cooperation and Development
(OECD), by October 2007, the average network downstream speed of OECD’s major countries
was 17.4 Mbps, and the downstream speed of Japan as the country most developed in broadband
had even exceeded 90 Mbps, while the majority of China’s Internet access predominated by ADSL
has a downstream speed of no more than 4 Mbps. Meanwhile, because of broadband share, the
speed will be even lower in peak hours.

Thus, it can be seen that China is still far behind the countries developed in the Internet in the
speed of broadband access. We need to further intensify the construction of Internet infrastructure
and constantly increase Internet connection speed to advance the high-speed development of
China’s Internet.

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kbit/s
20 000 40 000 60 000 80 000 100 000

日本
Japan 92 846
韩国
Korea 80 800
法国
France 51 000
芬兰
Finland 19 226
荷兰
The Netherlands 18 177
德国
Germany 15 919
澳大利亚
Australia 15 539
丹麦
Denmark 14 633
葡萄牙
Portugal 14 100
冰岛
Iceland 13 693
New新西兰
Zealand 13 527
挪威
Norway 12 364
瑞典
Sweden 12 297
意大利 Italy 11 939
英国UK 10 673
捷克
Czech 10 468
奥地利
Austria 10 292
卢森堡
Luxemburg 9 984
美国
USA 9 641
西班牙Spain 9 631
瑞士
Switzerland 7 946
比利时
Belgium 7 544
希腊
Greece 7 504
斯洛伐克 Slovak 6 254
加拿大
Canada 6 236
Ireland
爱尔兰 6 201
匈牙利
Hungary 5 354
波兰
Poland 4 313
Turkey
土耳其 3 338
墨西哥
Mexico 1 514
国际经合组织 OECD 17 412

Fig. 4 Network Downstream Broadband of OECD’s Major Countries (kbit/s)

(III) Number of Mobile Internet Users

By June 2009, the number of mobile Internet users had jumped to 155 million, up 32.1% within
six months, showing a momentum of fast growth.

0,000

Fig. 5 Comparison in Number of Mobile Internet Users

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The fast growth of the number of mobile Internet users is ascribable to the following respects:

I. Concerted efforts of the government and operators. The State Council adopted the resolution to
launch the work of issuing 3G licenses on January 1, 2009, which offered operators larger
development space and strengthened the concept of mobile Internet. Afterwards, China Mobile
reduced the tariffs on GPRS data throughput; China Telecom lowered the fee for the wireless
access package; China Unicom introduced diversified GPRS packages, etc. Major operators
successively took actions to attract and increase users to promote market development.

II. Integration of Internet access and fashion concept. With the Penetration of mobile phone with
the function of Internet access and the facilitation of mobile access platforms, mobile phone is not
only the most portable tool for Internet access, but a symbol of fashion, trend and popular culture.
The fashion of mobile access attracts young users, thus boosting the number of mobile Internet
users

III. Enrichment of Internet content and applications. The amount and quality of mobile access
increase gradually, with mobile blog, mobile video and mobile TV growing rapidly to offer users
richer choices and to promote the expansion of mobile Internet users.

II. Structural Characteristics of Internet Users

(I) Sex Structure
By June 2009, the proportion of male users to female users in China had been 53:47, relatively
stable compared with late 2008.

Male Female

Fig. 6 Comparison in Sex Structure of Internet Users

In the first half of 2009, the proportion of Chinese rural female users rose slightly by 1.6%,

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showing the progressive convergence of rural Internet development to urbanization and more
Internet access by rural women.

Male Female

Fig. 7 Comparison in Sex Structure of Rural Internet Users

(II) Age Structure

The age structure of Chinese Internet users was optimized constantly, showing a trend of maturity.
Compared with late 2008, the proportion of users aged 30 to 39 increased significantly within six
months from 17.6% to 20.7%. Additionally, the proportion of users aged 40 or above showed a
trend of increase and the proportion of young group aged 10 to 29 dropped remarkably.
60 or above
Below 10

10 to 19

20 to 29

30 to 39

40 to 49

50 to 59

Fig. 8 Comparison in Age Structure of Internet Users

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The number of Chinese teenage users was 175 million, up 5% within six months and accounting
for 51.8% of all Internet users.

0,000

Fig. 9 Comparison in Number of Teenage Users on the Chinese Mainland

(III) Education Structure

Compared with late 2008, Internet users are still tilting gradually to low education, with the
number of those with the education of primary school or below and senor high school increasing
slightly.

Primary school Junior high Senior high Junior Bachelor or

or below school school college above

Fig. 10 Comparison in Education Structure of Internet Users

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(IV) Occupation Structure

Now, the largest group of Internet users is still students, accounting for 31.7% of all Internet users.
Compared with late 2008, the proportion of laid-off workers rose 2.1%, showing that Internet
access was increased in the group and online information could be transmitted to the lower class.

Others
Laid-off workers
Retired workers
Farming, forestry, animal husbandry and fishery laborers
Freelancers
Self-employed workers
Industrial and service workers
Migrant workers
Professional and technical staff
Common corporate staff
Corporate managers
Workers with Party and government organs and institutions
Students

Fig. 11 Occupation Structure of Internet Users

(V) Income Structure

As the largest group of Internet users is students, the proportion of low-income users is high.
However, compared with late 2008, the proportion of medium & high-income users increased,
with the proportion of those with a monthly income of over RMB 1,500 rising from 40.3% to
41.8%.

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Over RMB 8,000

RMB 5,001 to 8,000
RMB 3,001 to 5,000
RMB 2,001 to 3,000
RMB 1,501 to 2,000
RMB 1,001 to 1,500
RMB 501 to 1,000
Less than RMB 500
No income

Fig. 12 Income Structure of Internet Users

(VI) Urban and Rural Structure

By June 2009, the proportion of Chinese urban Internet users had been consistent with that in late
2008, with the proportion of rural users increasing slightly. Now, the number of rural users has
reached 95.65 million and is increasing progressively, but the penetration of the Internet into the
rural areas slowed down a bit compared with 2008.

City Countryside

Fig. 13 Comparison in Urban and Rural Structure of Internet Users

By late June 2009, the number of Chinese rural Internet users had increased by 11.05 million to
95.65 million, up 13.1% from late 2008.

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0,000

Fig. 14 Comparison in Number of Rural Internet Users on the Chinese Mainland

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Chapter III Basic Internet Resources

I. Overview of Basic Resources
Within six months from late 2008 to June 2009, the number of Chinese IPv4 addresses increased
by 23.75 million to 205 million.

By June 2009, the total number of Chinese domain names had reached 16.26 million, including
12.96 million CN domain names. Both the number of domain names and that of CN domain
names dropped slightly compared with late 2008.

The number of Chinese websites was 3.061 million, of which CN websites accounted for 78.7%.

China’s international outlet bandwidth was 747,541.4Mbps, up 16.8% within six months.

Table 1 Comparison in Basic Internet Resources of the Chinese Mainland from December 2008 to
June 2009
Six-month Six-month
Dec. 2008 Jun. 2009
Growth Growth Rate
IPv4 181,273,344 205,031,168 23,757,824 13.1%
Domain name 16,826,198 16,259,562 -566,636 -3.4%
CN domain name 13,572,326 12,963,685 -608,641 -4.5%
Website 2,878,000 3,061,109 183,109 6.4%
CN website 2,216,400 2,410,546 194,146 8.8%
International outlet bandwidth (Mbps) 640,286.67 747,541.40 107,255 16.8%

II. IP Address
IP addresses fall into two categories: IPv4 and IPv6, with the former as the mainstream. By June
2009, the number of Chinese IPv4 addresses hand reached 205,031,168, up 13.1% from late 2008.

According to the growth trend in the first half of the year, the growth rate of IPv4 resources
slipped continuously. The scarcity of IPv4 resources will worsen the situation.

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0,000

Number of
IPv4 Growth rate
addresses

Fig. 15 Change in IPv4 Address Resources of the Chinese Mainland from 2006 to June 2009

III. Domain Name

By June 2009, the total number of Chinese domain names had reached 16.26 million, nearly 80%
of which was CN domain names.

Table 2 Number of Classified Domain Names of the Chinese Mainland

Proportion to Total Number of
Number
CN Domain Names
CN 12,963,685 79.7%
COM 2,811,383 17.3%
NET 398,801 2.5%
ORG 85,693 0.5%
Total 16,259,562 100%

Among the existing CN domain names, the proportion of second-level domain names is still
highest, accounting for 66.8% of all CN domain names, followed by .COM and .CN domain
names with a proportion of 25%.

Table 3 Number of Classified CN Domain Names of the Chinese Mainland

Proportion to Total Number of
Number
CN Domain Names
.cn 8,659,698 66.8%
.com.cn 3,241,876 25.0%
.net.cn 456,343 3.5%

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.adm.cn2 201,164 1.6%

.org.cn 333,022 2.6%
.gov.cn 52,477 0.4%
.ac.cn 15,577 0.1%
.edu.cn 3,520 0.0%
.mil.cn 8 0.0%
Total 12,963,685 100.0%

IV. Website
By June 2009, the number of Chinese websites, namely the number of websites of domain name
registrants within the territory of China (including those accessing the Internet from home and
abroad) had reached 3.06 million, up 6.4% from late 2008.

0,000

Fig. 16 Change in the Number of Websites on the Chinese Mainland from June 2005 to June
2009

Note: The data exclude the number of .EDU.CN websites

V. International Outlet Bandwidth

By June 2009, China’s international outlet bandwidth had reached 747,541Mbps, up 16.8% from
late 2008.

2
.adm.cn refers to the domain names of Chinese administrative regions, such as bj.cn and sh.cn.

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Fig. 17 Change in International Outlet Bandwidth of the Chinese Mainland from December
2005 to June 2009

Table 4 International Outlet Bandwidth of Major Backbone Networks on the Chinese Mainland
International Outlet Bandwidth (Mbps)
China Telecom 416,778.9
China Unicom 295,136.5
CSTNet 10,477
CERNet 9,932
China Mobile Internet 15,215
CIETNet 2
Total 747,541.4

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Chapter IV Internet Access

I. Access Places
Now, 80.2% of Internet users surf the Internet at home, and family is still the primary place for
Internet access. The number of Internet users surfing the Internet at net cafe fell by 7% compared
late 2008, and that of Internet users surfing the Internet at company rose by 5%.

Home Net cafe Company School Dormitory Others

Fig. 18 Access Places

II. Access Equipment

The proportion of accessing the Internet by mobile increased enormously from 39.5% in late 2008
to 46% in June 2009, while the proportion of using desktops and laptops decreased.

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Desktop Mobile phone Laptop Others

Fig. 19 Access Equipment

III. Access Modes

The survey showed that the Penetration rate of broadband access was still climbing, now 94.3% of
Chinese Internet users have accessed the Internet by broadband, and the proportion of narrowband
use is 40.8%. The narrowband mentioned here includes traditional narrowband and wireless
narrowband, due to the rapid shrinkage of the proportion of traditional narrowband, the use rate of
narrowband remains low on the whole in spite of the increase in the proportion of wireless
narrowband use.

Broadband Narrowband

Fig. 20 Penetration Rate of Broadband and Narrowband

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IV. Online Time

Internet users surfing the Internet frequently, and 39.5% are online six to seven days a week.
Meanwhile, Internet users’ online line increased significantly by 1.4 hours a week per capita
compared with late 2008.

Hour

Fig. 21 Comparison in Average Weekly Online Time

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Chapter V Internet Applications

I. Major Internet Applications
According to the purposes of Internet users, Internet applications may fall into four categories:
information acquisition, communication, Internet entertainment and business transaction, basically
covering specific applications like Internet news, search engine, instant messaging, online game,
online music, online shopping, online payment and online banking.

On the whole, the proportion of Chinese Internet users accessing the Internet for entertainment,
information and communication purposes was high. Except for forum/BBS, the Penetration rate of
the three Internet applications in Internet users was all over 50%. The level of application of
business transaction remained low, and the Penetration rate of online shopping was 26%.

Table 5 Rankings and Categories of Internet Applications

Rank Application Use Rate Category
1 Online music 85.5% Internet entertainment
2 Internet news 78.7% Information acquisition
3 Instant messaging 72.2% Communication
4 Search engine 69.4% Information acquisition
5 Online video 65.8% Internet entertainment
6 Online game 64.2% Internet entertainment
7 E-mail 55.4% Communication
8 Blog 53.8% Communication
9 Forum/BBS 30.4% Communication
10 Online shopping 26.0% Business transaction
11 Online payment 22.4% Business transaction
12 Online stock 10.4% Business transaction
13 Travel reservation 4.1% Business transaction

(I) Information Acquisition

1. Search Engine

By June 2009, 69.4% of Internet users had used search engines, up 1.4% from late 2008. Now,
search engine has become a major information entry for Internet users and has a profound impact
on their Internet life and real life.

Table 6 Comparison in Users of Search Engines from December 2008 to June 2009
Late 2008 Middle 2009 Change within 6 Months
Number of Number of
Growth
Use Rate Internet Users Use Rate Internet Users Growth Rate
(0,000)
(0,000) (0,000)
Search engine 68.0% 20,300 69.4% 23,457 3,157 15.6%

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2. Internet News

Now, the use rate of Internet news remains steady at 78.7%, up slightly from late 2008. Because
the instantaneity and convenience of the Internet, Internet news has always been one of the most
frequent Internet applications of Internet users, whose depth and speed of dissemination are both
ahead of traditional media. Particularly following major news events like the Beijing 2008
Olympic Games and Wenchuan earthquake, the Internet has become one of the most convenient
media means to keep up to date with news events. In early July 2009, New York Times announced
that it would accredit the Internet media in partnership to first publish its news content on the
Internet, including news and photos. The trend will strengthen Internet media’s speed, depth and
authority of information dissemination in the future. Meanwhile, user generated content (UGC)
and interaction-generated relation communication will become the new features of development of
Internet media to jointly boost the fast growth of Internet media.

Table 7 Comparison in Users of Internet News from December 2008 to June 2009
Late 2008 Middle 2009 Change within 6 Months
Number of Number of
Growth
Use Rate Internet Users Use Rate Internet Users Growth Rate
(0,000)
(0,000) (0,000)
Internet news 78.5% 23,400 78.7% 26,601 3,201 13.7%

(II) Communication
1. E-mail

By June 2009, the use rate of e-mail had reached 55.4%, down 1.4% from late 2008. Generally
speaking, the higher Internet users’ education is, the higher the use rate of e-mail is, with the
ceaseless influx of people with low education, the use rate of e-mail will decline slightly in the
short term. However, with the further Penetration of the Internet and the growth of Internet users,
more and more people will use e-mail as a means of work and life, the use rate of e-mail will
ascend in the long run.

2. Instant Messaging

The number of instant messaging users increased by 20.04 million within six months, but the use
rate tumbled again by 3.1% after a drop in late 2008.

Table 8 Comparison in Users of Internet Communication from December 2008 to June 2009
Late 2008 Middle 2009 Change within 6 Months
Number of Number of
Growth
Use Rate Internet Users Use Rate Internet Users Growth Rate
(0,000)
(0,000) (0,000)
E-mail 56.8% 16,900 55.4% 18,725 1,825 10.8%
Instant messaging 75.3% 22,400 72.2% 24,404 2,004 8.9%

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3. Blog and Forum

By late June 2009, the number of Chinese Internet users with personal blogs/spaces had hit 182
million. The number of users increased net by 19.84 million, and the use rate was steady at 53.8%,
after long-term fast growth, down 0.5% from late 2008. The proportion of users updating blogs
within six months increased to 35.3% from 35.2% in late 2008, and the number of active blogs is
further rising.

With the increase in recognition and Penetration of blogs, blog application has tended to stability.
Additionally, a considerable number of grass-roots blogs transferred from professional blog
operators to more interactive SNS (Social Networking Services) sites, which benefited blog
update and growth.

Table 9 Comparison in Users of Internet Communities from December 2008 to June 2009
Late 2008 Middle 2009 Change within 6 Months
Number of Number of
Growth
Use Rate Internet Users Use Rate Internet Users Growth Rate
(0,000)
(0,000) (0,000)
Blog ownership 54.3% 16,200 53.8% 18,184 1,984 12.2%
Blog update 35.2% 10,500 35.3% 11,931 1,431 13.6%
Forum/BBS 30.7% 9,100 30.4% 10,275 1,175 12.9%

(III) Internet Entertainment

1. Online Game

By June 2009, the use rate of online game services had only been 64.2%, up 1.4% from late 2008,
and the number of players had increased by 30 million to 217 million. The proportion of primary
and high school students playing online games increased to 73.8% from 69.7% in late 2008. The
steady growth of online game players was ascribable to the fact that the use proportion of students
and low-income Internet users is high due to the high viscosity and low threshold of online games
on the one hand, and the fact that the current economic situation has brought about problems like
unemployment and income reduction to compel people to lower their expectation of future income,
thus reducing entertainment consumption. However, online game is exactly an entertainment
application with low input and great experience at low cost, therefore it has become people’s new
interest, and the reasonable choice of entertainment forms boost the increase in the use rate of
online games.

In the meantime, the growth rate of online game players was only 16% within six months, hitting
the lowest since 2007. This is mainly due to the fact that China’s online game industry has
gradually become mature through over ten years of development, and means that the growth of
online game players will slow down, besides, game product line and operation modes are
improved progressively, therefore the competition in China’s online game industry will be further
intensified in the future.

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Table 10 Comparison in Users of Internet Entertainment from December 2008 to June 2009
Late 2008 Middle 2009 Change within 6 Months
Number of Number of
Growth
Use Rate Internet Users Use Rate Internet Users Growth Rate
(0,000)
(0,000) (0,000)
Online game 62.8% 18,700 64.2% 21,699 3,000 16.0%
Online music 83.7% 24,900 85.5% 28,899 3,999 16.1%
Online video 67.7% 20,200 65.8% 22,240 2,040 10.1%

2. Online Music

Online music has always been the top Internet application, and its use rate continued to climb with
an increase of 1.8% in penetration rate and a growth rate of 16.1% in the number of users within
six months.

3. Online Video

The number of online video users increased by 10% within six months, and the use rate shrank
slightly by 1.9% with the number of users maintaining growth. This is probably related to the
fluctuation in the development of the video industry since late 2008. The introduction of the
system for the issuance of online video licenses marks that the State has posed new requirements
for the development of new video media and possibly bring a new change to the layout of the
online video industry. The supervisory department has begun to focus on the construction of the
regularized market, and the content system of vide websites is being regularized progressively,
after a round of shuffle, the market concentration of vide websites was further increased, and
withdrawal of some video websites also led to the loss of some users.

(IV) Business Transaction

1. Online Shopping

The number of online shoppers rose against the economic crisis by nearly 14 million from 74
million to 87.88 million, more and more Internet users were used to transparent and convenient
online shopping. Now, one out of four Chinese Internet users shops online, while two out of three
Internet users in countries with high Internet Penetration like Europe, America and Korea are
online shoppers. China’s potential of online shopping is yet to be released. Additionally, the
government has attached great importance to e-commerce’s stimulus to the economy, and has
released a series of policies to regularize and guide e-commerce development; industry
e-commerce also grew vigorously, with more e-commerce platforms emerging and more and more
farsighted traditional enterprises setting out for e-commerce. Against the general background,
e-commerce is expected to maintain fast growth in the coming years.

2. Travel Reservation

Online hotel/travel reservation is one of the major e-commerce applications, whose users are
mainly high-end Internet users, probably due to the current economic situation, the scale dropped

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slightly compared with late 2008. On the whole, the growth of online hotel/travel reservation is a
general trend, and the scale will definitely increase with the upturn in the economy.

Table 11 Comparison in Users of Business Transactions from December 2008 to June 2009
Late 2008 Middle 2009 Change within 6 Months
Number of Number of
Growth
Use Rate Internet Users Use Rate Internet Users Growth Rate
(0,000)
(0,000) (0,000)
Online shopping 24.8% 7,400 26.0% 8,788 1,388 18.8%
Travel reservation 5.6% 1,700 4.1% 1,386 -314 -18.5%
Online payment 17.6% 5,200 22.4% 7,571 2,371 45.6%
Online stock 11.4% 3,400 10.4% 3,515 115 3. 4%

3. Online Payment

Online payment is a major indicator for the commercial applications of the Internet closely related
to the life of numerous Internet users. The application of online payment grew fast by 23.71
million within six months.

4. Online Stock

The application rate of online stock continued to fall in the first half of 2009, but began to bottom
out on the whole with a slight increase of 1.15 million in 2008.

II. Survey on Hot Internet Applications

(I) Network Security
Network security has become an issue attracting wide attention from all circles. According to the
survey, 57.6% of Internet users were attacked by viruses or Trojan horses during surfing the
Internet within six months

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No idea

No

Yes

Fig. 22 Virus or Trojan Horse Attack within Six Months

Meanwhile, the accounts or passwords of 110 million Internet users were stolen over the past six
months, accounting for 31.5% of all Internet users, network security is non-negligible, and
potential safety hazards may restrict the development of transaction applications like e-commerce
and online payment.

No idea

Yes

No

Fig. 23 Account or Password Stealing within Six Months

According to the survey, the proportion of Chinese Internet users using network security software
is high, now 82.4% of Chinese Internet users have installed security software in the most
frequently used computers. Besides, there is a high recognition of security software among
Internet users, only 5.2% of whom have no idea of network security software.

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No idea

No

Yes

Fig. 24 Facts on Installation of Security Software in Most Frequently Used Computers

(II) Internet Agricultural Information

45.29 million Internet users visited agricultural and rural websites within six months, accounting
for 13.4% of all users. With the gradual increase in the level of rural informatization, agricultural
industrialization network platforms were established, and the measures for assisting farmers in
agricultural production and income increase through informatization were deepened constantly.
However, the proportion of users of rural information websites is still very low, and the function
of agriculture assistance and promotion by the Internet and other information means is yet to be
explored.

Yes

No

Fig. 25 Visit to Agricultural and Rural Websites within Six Months

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Now, 14.8% of rural Internet users visited agricultural websites within six months, accounting for
31.3% of all users visiting agricultural websites; and the proportion of farming, forestry, animal
husbandry and fishery laborers visiting rural or agricultural websites was 42.7%

Farming, forestry,
All Internet users Rural users animal husbandry
and fishery laborers

Fig. 26 Proportion of Different Groups Visiting Agricultural Websites

Among the Internet users visiting agricultural websites, CNNIC conducted a survey on three
applications-search of information of agricultural materials, search of planting and breeding
information and search of supply and demand information of farm products. According to the
results of the survey, the proportion of the three applications was 41.6%, 40.4% and 39.6%.

Search of information of
agricultural materials

Search of planting and breeding

information

Search of supply and demand

information of farm products

Others

Fig. 27 Concrete Applications of Agricultural and Rural Websites

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Chapter VI Study of Mobile Access

I. Number and Structural Characteristics of Mobile
Internet Users
By late June 2009, the number of mobile Internet users had reached 155 million, accounting for
46% of all users, and the proportion of mobile Internet users increased by 6.5% within six months.

100 Million

Number of mobile Proportion to all

Internet users Internet users

Fig. 28 Proportion of Mobile Internet Users to All Internet Users

(II) Structural Characteristics of Mobile Internet Users

The ages of mobile Internet users are distributed in a skewed manner, and those aged 10 to 29 are
more concentrated. Compared with overall Internet access, mobile access is more attractive to
young groups, especially teenagers.

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Below 10

10 to 19

20 to 29

30 to 39

40 to 49

50 to 59

60 or above
Mobile All
Internet users Internet users

Fig. 29 Comparison in Age Characteristics of Mobile Internet Users and All Users

According to education comparison, the proportion of mobile Internet users with low education is
larger, while the proportion of those with the education of junior high school and senior high
school is 4.5% higher than the proportion of all Internet users in this age group.
or blow

school

school

Junior
Junior high

college

Master or above
Primary school

Senior high

Bachelor

Mobile All
Internet users Internet users

Fig. 30 Comparison in Education Characteristic of Mobile Internet Users

Compared with all Internet users, the proportion of low-income mobile Internet users is higher,

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and the proportion of mobile Internet users with a monthly income of RMB 501 to 1,000 is 2.7%
higher than that of all Internet users.

Over RMB 8,000

RMB 5,001 to 8,000

RMB 3,001 to 5,000

RMB 2,001 to 3,000

RMB 1,501 to 2,000

RMB 1,001 to 1,500

RMB 501 to 1,000

Less than RMB 500

No income

All Mobile
Internet users Internet users

Fig. 31 Income Characteristic of Mobile Internet Users and All Internet Users

II. Mobile Applications

Now, 71.5% of mobile Internet users use the function of mobile chat, which is most frequently
used in mobile applications. The use rate of mobile search and that of online music listening/music
downloading are 26.2% and 25.8%, which make up the second echelon of mobile applications,
while the use proportion of online mobile game, mobile mail, community and blog is low.

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Mobile chat

Mobile search

Online music listening or music downloading

Online mobile game

Mobile mail

Mobile community

Mobile blog

Mobile TV

Fig. 32 Mobile Applications

III. Expectation of 3G Market and Analysis of Influential

Factor for Mobile Access
1. Expectation of 3G Mobile Access

Yes
Unnecessarily

No

Fig. 33 3G Mobile Access by Mobile Internet Users in the Coming Six Months

According to the survey, 28% of the existing mobile Internet users said they would access the
Internet by 3G mobile phone in the future; 32.4% said they would not consider 3G mobile access,
and the remaining 39.6% were not certain about whether they would access the Internet by mobile

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phone. Now, Internet users have little understanding of 3G mobile access, the capacity of the
future 3G market is flexible, and operators’ 3G product strategies and development of users’
surfing habits are vital.

Unnecessarily
Unnecessarily

No

Yes

No
Yes

Expectation of mobile access Expectation of 3G mobile

by non-mobile Internet users access in the coming six
in the coming six months months

Fig. 34 Expectation of Mobile Access by Non-Mobile Internet Users in the Coming Six
Months

However, 14.8% of the users that have not accessed the Internet by mobile phone said they would
probably access the Internet by mobile phone in the coming six months, and 49% said they would
use 3G mobile phone to access the Internet.

For the Internet users that will probably use 3G mobile phone, 65.7% will take mobile chat as the
most likely mobile application, and the figure is less than the average (71.5%) of the existing
mobile Internet users using mobile chat, while the desire for applications like music downloading
is higher than the actual use rate currently.

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Mobile chat

Online music listening or music downloading

Mobile TV

Mobile search

Online mobile game

Mobile blog

Mobile mail

Mobile community

Fig. 35 3G Mobile Applications in the Coming Six Months

2. Influential Factors for Mobile Access Experience

Over 50% of mobile Internet users said “low access speed” is the most important influential factor
for mobile access; 34.6% thought “access fee is too high”; while “large power consumption” is the
third hindering factor for mobile access. Besides hardware factor (such as small screen) for mobile
access, “undesirable content and application” is also a major influential factor for mobile access.

Low access speed

High access fee

Large power consumption

Small screen

Confusing and unreasonable charge

Undesirable content and application

Hard to say

Others

Fig. 36 Influential Factor for Mobile Access

3. Restraining Factor for Mobile Access

According to the survey to non-mobile Internet users, the main reason of 37.5% for not accessing

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the Internet by mobile phone is “no idea of how to use”, Internet users’ little understanding of
mobile access becomes the primary restraining factor for mobile access; “no need” is the second
reason for not accessing the Internet by mobile phone; besides hardware barriers like “no mobile
phone” and “mobile nonsupport”, “no idea of mobile access” and “high fee” are also restraining
factors for mobile access.

No idea how to use

No need
Hard to say
No mobile phone
Mobile nonsupport
No knowledge of access fee
No idea of mobile access
High fee
Others

Fig. 37 Most Influential Factors for Mobile Access

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Chapter VII Study of Internet

Lifestyles
I. General Analysis
As an interactive medium, information channel and life platform, the impact of the Internet is on
people’s behavior is particularly worthy of study. According to the focuses of Internet study and
the industry, we may divide Internet behavior and attitude into Internet trust, Internet interaction
and Internet reliance, describe the general Internet lifestyles of Internet users from seven
perspectives like information trust, transaction trust, social participation, Internet share and
Internet addiction, and compare the difference in various lifestyles between groups at different
ages and net ages.

Table 12 Internet Users’ Overall Recognition of Lifestyle Remarks

Category Indicator Test Item Recognition
The Internet is a major information channel of mine 84.3%
Information trust
I trust the information on the Internet more than television 48.0%
Internet trust
I am willing to provide true data during online registration 39.4%
Transaction trust
I believe online transaction to be safe 29.2%
I often express my opinions online 56.1%
Social participation I have been more concerned about social events since I
started surfing 81.7%
Internet
Interpersonal I get acquainted with a lot of new friends through the Internet 66.5%
interaction
development The Internet cements my relation with friends 87.0%
I often share knowledge with others online 78.5%
Internet share
Whenever I see something good online, I will forward it 76.0%
My life is inseparable from the Internet 77.5%
Life aid
The Internet saves me much time 81.6%
Internet I feel lonelier in the era of Internet 22.0%
Social isolation
reliance The Internet reduces the time I spend with my family 34.4%
I will feel sick once I can’t access the Internet 16.4%
Internet addiction
I am more willing to stay online than in the real society 17.4%

The Internet plays a prominently positive role in information acquisition, interpersonal

communication, social participation, practical life convenience and other respects, but is prone to
isolating Internet users away from the reality to probably cause Internet addiction. Overall,
Internet users have a higher recognition of the Internet as life aid, and the value of the Internet as
information channel and means of association is prominent.

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II. Internet Trust

1. Information Trust

Now, 84.3% of Internet users believe the Internet to be the most important information channel,
and 48% trust the Internet more than television. The point-to-point dissemination structure of the
Internet accelerates information penetration and widens dissemination scope, posing a great
challenge to information verification. Now, the use rate of Internet news as the second largest
Internet application among Internet users has reached 78.7%. Under the condition of Internet
users’ high trust in Internet information, the issues of Internet information management and
information security are particularly important.

I trust the information on the

Internet more than television

The Internet is a major

information channel of mine

Fig. 38 Internet Information Trust

According to analysis, the proportion of university students viewing the Internet as a major
information channel is high (90.5%), but they have a low (37.1%) trust in Internet information, the
contrast is worthy of in-depth study.

2. Transaction Trust

Internet users have low trust in online transactions, with only 29.2% recognizing the security of
online transactions and less than 40% willing to provide true information online. In spite of the
substantial development of online business transactions in China, low trust in online transactions
is still one of the obstacles to the development of business applications.

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I believe online transaction to be

safe

I am willing to provide true data

during online registration

Fig. 39 Online Transaction Trust

It is found through in-depth analysis that the higher the net age is, the higher the income is, the
more frequent the use of the Internet is, the higher Internet users’ trust in online transactions is.
However, it is founded through education analysis that though the higher education is, the security
of online transaction is more believed, Internet users with the education of junior college or above
are more unwilling to provide true registration information compared with those with lower
education.

According to the degree of information trust and transaction trust of Internet users, whether
Internet information or Internet business applications, network security and honesty have always
been a worrying factor. As the Internet transited from the age of web browsing (web1.0) to the age
of content generation by Internet users (web2.0), Internet applications have grown from simple
mail at first to diversified forms now, and the Internet should also march from the stage of
usability to the stage of credibility, thereby creating healthy and harmonious network order and
advancing the extensive application of e-commerce.

III. Internet Interaction

1. Social Participation

With the development of the Internet in China, the Internet is playing a more and more important
role in promoting people to participate in social activities. 81.7% of Internet users said that they
had been more concerned about social events since they started surfing, up 4.8% from 2008.

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I have been more concerned about social

events since I started surfing

I often express my opinions online

Fig. 40 Social Participation Promoted by the Internet

It is found through in-depth analysis that the higher the age is, the higher the education and
income is, and the lower the proportion of Internet users expressing opinions online; according to
the analysis of occupational identity, the proportion of primary and high school students
expressing opinions online is higher than university students, and the proportion of migrant
workers and industrial and service workers is higher than that of corporate managers.

2. Interpersonal Development

With a use proportion of 72.2%, instant messaging is the third largest Internet application.
Through networking application, human association is developed and interpersonal relation
becomes closer. Now, nearly 90% of Internet users recognize that the Internet has cemented
relations with friends, up 4.5% within six months. Internet users’ recognition that the Internet has
contributed to the development of interpersonal relation has also reached 66.5%。

The Internet cements my relation

with friends

I get acquainted with a lot of new

friends through the Internet

Fig. 41 Development of Interpersonal Relation

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It is found through in-depth analysis that the lower the age is, the education is lower, the income is
lower, the net age is lower, and the higher is the recognition that the Internet has contributed to the
development of interpersonal relation.

3. Internet Share

Now, more and more Internet users share information online, and 76% will forward anything good
they see online. 78.5% of Internet users often share knowledge with others. The behavior of
mutual help is conductive to promoting knowledge dissemination and increasing production and
life efficiency to a certain extent, and is closely related to the creation of a healthy and positive
Internet environment.

Whenever I see something good

online, I will forward it

I often share knowledge with

others online

Fig. 42 Common Share Behavior

Young Internet users are active in Internet share, as low-age users are more active in online mutual
help, as they grow up, the behavior of Internet share and online mutual help will be more
prevalent in the future.

IV. Internet Reliance

1. Life Aid

81.6% of Internet users recognize that handling affairs online saves much time, 77.5% think that
life is inseparable from the Internet, which has penetrate into all respects of people’s livelihood,
and Internet users also feel the life convenience brought by the Internet. In terms of Internet
applications, the Penetration rate of basic Internet applications like search engine, instant
messaging and e-mail is higher, the use rate of online shopping and online payment increases year
by year, the Internet has become an indispensable tool for life.

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The Internet saves me much time

My life is inseparable from the Internet

Fig. 43 Perception of Role of the Internet as Life Aid

2. Social Isolation

With the progressive penetration of the Internet into people’s life, the Internet gradually widened
the distance of soul exchange, namely worsened social isolation. Compared with late 2008, the
number of Internet users feeling the Internet has reduced the time they spend with their families
jumped by 5.4%, and the number of those feeling lonelier in the era of Internet also increased by
2.1%.

I feel lonelier in the era of Internet

The Internet reduces the time I

spend with my family

Fig. 44 Social Isolation Caused by the Internet

3. Internet Addiction

According to the relevant measuring scale of Internet addiction, we chose relevant test remarks to
survey Internet users’ tendency to Internet addiction. 16.4% of Internet users said they would feel
sick once they could not access the Internet, 17.4% of Internet users were more willing to stay

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online than in the real society, one out of six Internet users was inclined to Internet addiction.

I am more willing to stay online

than in the real society

I will feel sick once I can’t access

the Internet

Fig. 45 Tendency to Internet Addiction

It is found through in-depth analysis that the Internet users “more willing to stay online that in the
real society” are more inclined to passive, resigned and evasive choices, while those feeling sick
one they can’t access the Internet are more inclined to positive, active and tendency choices.
According to analysis, the tendency of low-age Internet users to surf the Internet for the purpose
of evading the real society is stronger than the tendency to active Internet applications, while
high-age groups are on the contrary. Difference is also reflected in the occupational characteristics
of groups: the tendency of migrant workers, farming, forestry, animal husbandry and fishery
laborers, and laid-off workers to surf the Internet for the purpose of evading the real society is
stronger than the tendency to active Internet applications, while Workers with Party and
government organs and institutions and corporate managers are on the contrary.

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Conclusion
In the first half of 2009, the number of Chinese Internet users continued to increase fast to 338
million, including 155 million mobile Internet users and nearly 320 million broadband users.
Meanwhile, the growth rate of China’s basic Internet resources showed a trend of slowdown, of
which international outlet bandwidth, number of IP addresses and number of websites all hit the
lowest in growth since 2007. Particularly, in terms of broadband application, though the number of
Chinese broadband users is nearly 320 million, but it cannot be neglected that the broadband
mentioned here is defined according to access mode rather than transmission speed, and the
nominal transmission speed under the access mode is the transmission speed of shared bandwidth
and the speed in peak hours is far lower than the nominal transmission speed. In spite of the large
number of Chinese broadband users, China is still far behind the countries developed in the
Internet in broadband access environment, which does not fit in with the growth rate of Chinese
broadband users. To change the situation, we need to continue to intensify the construction of
network infrastructure, constantly increase Internet connection speed to advance the high-speed
development of China’s Internet.

However, it is encouraging to see main Internet resources showed a sign of structural optimization
while its growth slowed down. Take domain name for example, though the total number of
Chinese domain names in June 2009 was slightly lower than late 2008, the use rate of domain
names, especially the proportion of websites to domain names hit the highest since 2007.

Internet application environments include two aspects: one is the above-mentioned resource
environments like outlet bandwidth, website and IP address, the other is Internet users’
psychological experience online, especially psychological experience in Internet trust and network
security, which has a direct bearing on the depth of Internet use. According to the report, only less
than 30% of Internet users believe the security of online transactions, less than 40% are willing to
provide their true information during online registration. Distrust in network security will restrict
the development of in-depth Internet applications, and overprotection of personal information
caused by the distrust will also restrict the accuracy and effect of online marketing. Therefore, we
must promote the transition of the Internet from usable Internet to credible Internet.

As a high-speed and high-efficiency tool of the modern society, the Internet make some people
dependent on the Internet and inclined to Internet addiction while bringing convenience to
people’s life. According to the report, one out of six Internet users is inclined to Internet addiction.
Meanwhile, the sense of social isolation brought by the Internet is also strengthening constantly,
which has started to become the “wall of psychology” isolating Internet users from their families
and the society, which is showing a trend of gradual thickening. The Internet is tending to develop
from a controlled tool to an alienation breaking away from control and controlling people.
Therefore, while advancing the development of the Internet towards high-speed and credible
Internet, we must be wary of the conversion from the tool-oriented Internet to the goal-oriented
Internet.

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Annex 1 Tables of Basic Internet

Resources
Table 1 Number of IPv4 Addresses around China
Region Number of Addresses Equivalent
Chinese mainland 205,031,168 12A+56B+135C
Taiwan 25,201,920 1A+128B+141C
Hong Kong 8,233,216 125B+161C
Macau 163,072 2B+125C

Source: APNIC, CNNIC

Table 2 Assignment of IPv4 Addresses by Units on the Chinese Mainland

Unit Number of Addresses Equivalent
China Telecom Corporation 70,277,120 4A+48B+88C
China Unicom Corporation Limited 44,360,704 2A+164B+228C
China Mobile Communications Corporation 29,720,576 1A+197B+128C
China Education and Research Network 13,765,120 210B+10C
State Information Center 4,194,304 64B
Beijing Shenzhou Great Wall Telecom Technology 1,581,056 24B+32C
Development Center
Beijing Education Information Network Service 1,572,864 24B
Center Co., Ltd.
Beijing Teletron Telecom Engineering Co., Ltd. 1,397,760 21B+84C
Oriental Cable Network Co., Ltd. 1,138,688 17B+96C
Beijing Chengyi Shidai Network Technology 1,048,576 16B
Engineering Co., Ltd.
Beijing Shidai Hongyuan Communications Science 786,432 12B
& Technology Co., Ltd.
Beijing Broad Netcom Telecom Technology Co., 753,664 11B+128C
Ltd.
Beijing HiChina Science & Technology Co., Ltd. 729,088 11B+32C
Beijing Bitong United Network Technology Service 688,128 10B+128C
Co., Ltd.
China Cable Television Network Co., Ltd. 663,552 10B+32C
Beijing Billion Communication High-Tech & 655,360 10B
Development Corp.
Beijing Yiliyou Data Co., Ltd. 655,360 10B
Beijing Weishi Chuangjie Technology Development 655,360 10B
Co., Ltd.
Great Wall Broadband Network Service Co., Ltd. 655,360 10B

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Huaxia Shilian Holdings Co., Ltd. 524,288 8B

CITIC Network Co., Ltd. 524,288 8B
Beijing Kuancom Network Technology Co., Ltd. 524,288 8B
SSL China Science & Technology (Beijing) Co., 524,288 8B
Ltd.
21ViaNet (China) Inc. 509,952 7B+200C
CECT-Chinacomm Communications Co., Ltd. 487,424 7B+112C
Guangdong Jinwanbang Science & Technology 479,232 7B+80C
Investment Co., Ltd.
Beijing Shuxunda Communications Technology 446,464 6B+208C
Co., Ltd.
China Science & Technology Network 428,032 6B+136C
Shenzhen Topway Co., Ltd. 425,984 6B+128C
Beijing Beida Founder Broadband Network Science 401,408 6B+32C
& Technology Co., Ltd.
Beijing SRIT NETech Co., Ltd. 385,024 5B+224C
Jiangxi Radio & Television Network Transmission 327,680 5B
Co., Ltd.
Shandong Sanlian Electronic Information Co., Ltd. 327,680 5B
Guangzhou Radio & Television Network Co., Ltd. 327,680 5B
Daqing Zhongji Petroleum Communication 307,200 4B+176C
Construction Co., Ltd.
Huabei Oil Communication Co. 294,912 4B+128C
Beijing Fibrlink Communications Co., Ltd. 286,720 4B+96C
Foshan Ely Network Co., Ltd. 278,528 4B+64C
Jinan Guangdian Jiahe Broadband Network Co., 270,336 4B+32C
Ltd.
Langfang Economic & Technical Development 262,144 4B
Zone Huarui Xintong Network Technology Co.,
Ltd.
Beijing Yitaifeng Science & Technology 262,144 4B
Development Co., Ltd.
Shanghai Shanze Information Communication 262,144 4B
Technology Co., Ltd.
Shenzhen Inda Communication Co., Ltd. 249,856 3B+208C
Guangzhou Etrunk Telecommunication Co., Ltd. 233,472 3B+144C
Shanghai Aorong Information Science & 229,376 3B+128C
Technology Service Co., Ltd.
263 Network Communication Co. Ltd. 220,160 3B+92C
China Motion Telecom Corporation 204,800 3B+32C
Fujian ChinaFIC Communication Co., Ltd. 196,608 3B
Guangdong Cable Radio & Television Network 196,608 3B
Co., Ltd.
Shenzhen Wotong Network Development Co., Ltd. 196,608 3B
Shenzhen Asiastar Telecommunication Technology 180,224 2B+192C

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Service Co., Ltd.

Shaanxi BC & TV Network Intermediary Co., Ltd. 176,128 2B+176C
Beijing Citynet Communication Technology Co., 163,840 2B+128C
Ltd.
Digitalways Information and Culture Development 147,456 2B+64C
Co., Ltd.
SVA (Group) Co., Ltd. 131,072 2B
Guangdong Kingshine Investment Development 131,072 2B
Co., Ltd.
Tianjin Ruiding Digital Science & Technology Co., 131,072 2B
Ltd.
Beijing OptiEast Network Corporation Limited 131,072 2B
Beijing Euncn Science & Technology Co., Ltd. 126,976 1B+240C
Chongqing Cable TV Network Co., Ltd. 98,304 1B+128C
China Entercom Communication Technology Co., 98,304 1B+128C
Ltd.
Tianjin Broadcast & TV Network Co., Ltd. 77,824 1B+48C
Beijing Huaxia Guangwang Communication 73,728 1B+32C
Technology Co., Ltd.
Coca-Cola Enterprise Management (Shanghai) Co., 73,728 1B+32C
Ltd.
Beijing Xirang Media Culture Co., Ltd. 67,584 1B+8C
Shanghai Bennalong Network Science & 67,584 1B+8C
Technology Co., Ltd.
Shanghai HTP Network Technology Co., Ltd. 65,536 1B
Epern Science & Technology Co., Ltd. 65,536 1B
Shanghai Chuanwang Communication Science & 65,536 1B
Technology Co., Ltd.
Beijing Huandao Communication Co., Ltd. 65,536 1B
Hangzhou SRT Science & Technology Co., Ltd. 65,536 1B
Beijing Yanyang Century Science & Technology 65,536 1B
Co., Ltd.
Beijing Shocom Telecom Co., Ltd. 65,536 1B
Beijing Neteon Technology Co., Ltd. 65,536 1B
Tianjin Xinbei Broadband Digital Network Co., 65,536 1B
Ltd.
Shanghai Aitimu Network Science & Technology 65,536 1B
Co., Ltd.
Beijing Heju Digital Technology Co., Ltd. 65,536 1B
China Netcom Corporation Chongqing Branch 65,536 1B
Shanghai GEIS Information Technology Co., Ltd. 65,536 1B
China Digital Port Science & Technology Co., Ltd. 65,536 1B
TravelSky Technology Limited 65,536 1B
Anhui Education and Research Network 65,536 1B
Shantou Takewin Information Technology Co., Ltd. 65,536 1B

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Beijing Caihuida Technology Co., Ltd. 65,536 1B

Shenzhen Nova Science & Technology 65,536 1B
Development Co., Ltd.
Beijing CNLink Networks Limited 65,536 1B
Beijing CAPNET Information Service Co., Ltd. 65,536 1B
Sichuan Broadcasting & TV Network Co., Ltd. 65,536 1B
Shanghai Hanwei Information Science & 65,536 1B
Technology Co., Ltd.
Beijing Hangshu Broadband Network Science & 65,536 1B
Technology Co., Ltd.
Xiamen Broadcasting & TV Network Co., Ltd. 65,536 1B
Zhong Ping Energy Chemical Group Information 65,536 1B
Communication Technology Development Co., Ltd.
Guangzhou Gehua Network Science & Technology 65,536 1B
Development Co., Ltd.
21ViaNet Shanghai Information System Co., Ltd. 65,536 1B
China International Electronic Commerce Center 65,536 1B
(Co., Ltd.)
Airway Communication Co., Ltd. 65,536 1B
Epern Science & Technology Co., Ltd. 65,536 1B
Beijing Jinfeng Weiye Science & Technology Co., 65,536 1B
Ltd.
Beijing Brains Ocean Science & Technology Co., 65,536 1B
Ltd.
Henan Shenghong Science & Technology Co., Ltd. 65,536 1B
Shanxi Datong Coal Mine Group Communication 65,536 1B
Co., Ltd.
Dagang Oil Field Communication Co., Ltd. 65,536 1B
Subtotal 190,129,664 11A+85B+38C
Other units 14,901,504 227B+97C
Total 205,031,168 12A+56B+135C

Source: APNIC, CNNIC

Note 1: As the national Internet registry (NIR) of China recognized by APNIC and the Ministry of
Industry and Information Technology, CNNIC brought together ISPs with some scale and
influence at home to make up the IP address assignment union, which now consists of 284
members with 53,953,792 IPv4 addresses, equivalent to 3.22A . The majority of the table
above are members of the assignment union;

Note 2: The IPv4 address assignment table only lists the units with the number of IPv4 address
equal to and greater than 1B.

Table 3 Number of IPv6 Addresses around China

Region Number of IPv6 Addresses (/32)

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Chinese mainland 58/32

Taiwan 2,310/32
Hong Kong 20/32
Macau 2/32

Table 4 Assignment of IPv6 Address on the Chinese Mainland (/32)

Unit Number of IPv6 Addresses (/32)
Beijing BII Information Technology Co., Ltd. 16
China Education and Research Network 11
Beijing Shenzhou Great Wall Telecom Technology
Development Center 8
China Telecom Corporation 2
China Unicom Corporation Limited 2
China Southern Power Grid Co., Ltd. 2
China Internet Network Information Center 1
China Railcom Corporation 1
China International Electronic Commerce Center (Co., Ltd.) 1
China Science & Technology Network 1
China Mobile Communications Corporation 1
Beijing Teletron Telecom Engineering Co., Ltd. 1
Chongqing Netcom Information Port Broadband Network
Co., Ltd. 1
Tisson Communication Technology Co., Ltd., Dongguan Bolu
Telecom Branch 1
Beijing HiChina Science & Technology Co., Ltd. 1
Beijing Center for Promotion of Software and Information
Service Industry 1
Management Information Department of CITIC Group 1
Oriental Cable Network Co., Ltd. 1
Beijing Guxiang Information Technology Co., Ltd. 1
Great Wall Broadband Network Service Co., Ltd. 1
Hangzhou SRT Science & Technology Co., Ltd. 1
Zhong Ping Energy Chemical Group Information
Communication Technology Development Co., Ltd. 1
Beijing Beida Founder Broadband Network Science &
Technology Co., Ltd. 1

Source: APNIC, CNNIC

Note: “/32” in the IPv6 address assignment table is the expression of IPv6 addresses, the
corresponding number of addresses is 2(128-32) =296, similarly, the corresponding number of
“/48” is 2(128-48) =280.

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Table 5 Number of IPv4 Addresses of All Provinces

Province Proportion
Beijing 24.3%
Guangdong 9.1%
Zhejiang 5.4%
Jiangsu 5.1%
Shandong 4.7%
Shanghai 4.6%
Liaoning 3.3%
Hebei 3.1%
Henan 2.7%
Sichuan 2.4%
Hubei 2.4%
Fujian 2.2%
Shaanxi 1.9%
Hunan 1.8%
Heilongjiang 1.7%
Anhui 1.6%
Guangxi 1.5%
Jiangxi 1.5%
Tianjin 1.5%
Chongqing 1.4%
Jilin 1.3%
Shanxi 1.1%
Yunnan 0.9%
Inner Mongolia 0.8%
Xinjiang 0.7%
Hainan 0.7%
Guizhou 0.5%
Gansu 0.4%
Ningxia 0.2%
Qinghai 0.2%
Tibet 0.1%
Others 11.0%
Total 100.0%

Note: 1. The provinces where the owners of IPv4 addresses are located rather than the actual
provinces where the addresses are used are counted.

2. Source: APNIC, CNNIC

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Table 6 Number of Domain Names and CN Domain Names by Province

Province Domain Including: CN domain names

Proportion to All Proportion to All CN
Number Domain Names Number Domain Names
Anhui 214,616 1.3% 132,631 1.0%
Beijing 3,839,778 23.6% 3,446,010 26.6%
Fujian 894,675 5.5% 696,904 5.4%
Gansu 32,322 0.2% 25,280 0.2%
Guangdong 1,720,229 10.6% 1,209,433 9.3%
Guangxi 132,390 0.8% 110,933 0.9%
Guizhou 90,055 0.6% 81,501 0.6%
Hainan 70,509 0.4% 60,450 0.5%
Hebei 274,797 1.7% 185,750 1.4%
Henan 327,343 2.0% 216,257 1.7%
Helongjiang 175,855 1.1% 133,162 1.0%
Hubei 370,494 2.3% 272,109 2.1%
Hunan 490,066 3.0% 444,661 3.4%
Jilin 89,363 0.5% 75,043 0.6%
Jiangsu 784,645 4.8% 433,306 3.3%
Jiangxi 127,760 0.8% 105,593 0.8%
Liaoning 259,346 1.6% 194,518 1.5%
Inner
49,153 0.3% 41,701 0.3%
Mongolia
Ningxia 20,000 0.1% 15,625 0.1%
Qinghai 13,510 0.1% 9,781 0.1%
Shandong 642,637 4.0% 483,985 3.7%
Shanxi 95,369 0.6% 82,160 0.6%
Shaanxi 146,709 0.9% 108,016 0.8%
Shanghai 1,428,472 8.8% 1,067,984 8.2%
Sichuan 509,078 3.1% 284,985 2.2%
Tianjin 142,337 0.9% 89,327 0.7%
Tibet 12,479 0.1% 10,908 0.1%
Xinjiang 40,958 0.3% 34,545 0.3%
Yunnan 73,426 0.5% 58,034 0.4%
Zhejiang 1,054,257 6.5% 795,249 6.1%
Chongqing 197,759 1.2% 127,329 1.0%
Others 1,935,655 11.9% 1,926,995 14.9%
Total 16,256,042 100.0% 12,960,165 100.0%

Table 7 Number of Websites by Province

Number of Websites Proportion to All Websites
Anhui 41,247 1.3%
Beijing 340,439 11.1%
Fujian 157,546 5.1%

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Gansu 7,729 0.3%

Guangdong 397,639 13.0%
Guangxi 32,676 1.1%
Guizhou 10,196 0.3%
Hainan 9,188 0.3%
Hebei 100,699 3.3%
Henan 67,374 2.2%
Helongjiang 54,866 1.8%
Hubei 114,580 3.7%
Hunan 154,720 5.1%
Jilin 12,947 0.4%
Jiangsu 163,705 5.3%
Jiangxi 25,129 0.8%
Liaoning 54,741 1.8%
Inner Mongolia 10,752 0.4%
Ningxia 3,830 0.1%
Qinghai 3,621 0.1%
Shandong 142,001 4.6%
Shanxi 15,269 0.5%
Shaanxi 38,646 1.3%
Shanghai 201,626 6.6%
Sichuan 84,783 2.8%
Tianjin 32,337 1.1%
Tibet 3,651 0.1%
Xinjiang 8,317 0.3%
Yunnan 15,536 0.5%
Zhejiang 338,738 11.1%
Chongqing 54,427 1.8%
Others 362,154 11.8%
Total 3,061,109 100.0%

Note: The total number of CN websites excludes .EDU.CN websites.

Table 8 Number of .CN Websites on the Chinese Mainland

Number Proportion of .CN Websites
.cn 1,542,737 64.0%
.com.cn 688,415 28.6%
.net.cn 81,217 3.4%
.org.cn 45,530 1.9%
.adm.cn 23,918 1.0%
.gov.cn 27,240 1.1%
.ac.cn 1,489 0.1%
Total 2,410,546 100.0%

Note: The total number of CN websites excludes .EDU.CN websites.

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Annex 2 Survey Supporting Units

(I) Survey Supporting Websites (arranged at random)

www.peopledaily.com.cn www.xinhuanet.com www.cctv.com
gb.cri.cn www.chinadaily.com.cn www.gmw.cn
www.eastday.com

(II) Survey Portals (arranged in the linking order of websites)

www.sina.com.cn www.sohu.com www.163.com
www.tudou.com www.gz163.cn money.hexun.com
www.youku.com www.sznews.com www.jlonline.com
www.hl.cninfo.net www.360ve.com www.360ve.com/360_LY
www.he-nan.com

(III) Bandwidth Supporting Units

Beijing Communications Corporation IDC

(IV) Survey Assisting Unit (arranged at random)

China Telecom Corporation

China Unicom Corporation Limited

China Mobile Communications Corporation

China Education and Research Network Center

China Science & Technology Network Center

China Telecommunications Broadcast Satellite Corp.

China International Electronic Commerce Center (Co., Ltd.)

China Great Wall Network Center

Beijing East.net Information Science & Technology Co., Ltd.

Beijing HiChina Science & Technology Co., Ltd.

Beijing Sinonets Network Communication Technology Co., Ltd.

Beijing Xinnet Science & Technology Co., Ltd.

Beijing Xinnet Digital Information Technology Co., Ltd.

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Beijing Sanfront Network Technology Co., Ltd.

Chongqing Zhijia Information Science & Technology Co., Ltd. (CQHOT)

China Enterprise Power Science & Technology Corporation

Guangdong Now Science & Technology Co., Ltd.

Xiamen Huarong Shengshi Network Co., Ltd.

Xiamen Sanwu Hulian Science & Technology Co., Ltd.

Xiamen Zhongziyuan Network Service Co., Ltd.

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All rights reserved by China Internet Network

Information Center (CNNIC).
For any quotation or reproduction, please indicate the
source.

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