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VOL.3 March 2011
Online Bonanza
E-commerce brings wealth to China's rural villages
by Yu Nan

Nationwide

In addition to Qingyanliu, some villages in Hebei, Shandong and Jiangsu provinces are turning themselves into thriving commercial hubs through e-commerce.

In the town of Shaji, near the city of Xuzhou in east China's Jiangsu Province, there are more than 1,000 online stores. Combined, they had a sales volume of over 300 million yuan ($45.6 million) last year.

The per-capita income of Dongfeng, another famous e-commerce village in the town, stood at over 5,700 yuan ($838) in 2006. This rose to over 7,500 yuan ($1,140) in 2010.

Experts say that the e-commerce model in rural areas is not specific to the village of Qingyanliu or Dongfeng. They are confident that it can be replicated in other parts of rural China.

"[Because] it helps farmers start business, raise incomes, and make fortunes as the information technology develops vigorously [in rural areas]," said Wang Xiangdong, Director of Center for Informatization Study of the Chinese Academy of Social Sciences.

Other related industries such as logistics, processing, manufacturing and catering are also on the rise, forming a chain of e-commerce in the village, Wang added.

He also concluded, "E-commerce in rural business is [seen as] a fresh way. It is crucial to upgrade the economic development model in rural China."

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