Number of Internet users in China surged 13.4% from the end of 2008 to reach 338 Million, due to the increasing awareness and low-cost Internet access devices.

The China Internet Network Information Center revealed that the total number of Internet users in China reached 338 Million by the end of June 2009, marking a growth of 13.4% from the end of 2008, reported The Wall Street Journal.

Almost 94% of the Internet users, i.e. nearly 320 Million, are broadband users. Though, the speed of Internet broadband is far slower than that in the developed countries.

Besides this, the rate of Internet penetration touched 25.5% at the end of June 30, 2009, an increase from the level of 22.6% recorded at the end of 2008. Although with this rate China surpassed the world average of around 24%, Internet penetration rate in the country remains well below than the developed nations such as the US, which has the penetration rate of around 75%.

The official statistics reveal that the number of Internet users in China has outperformed the US population. More people are using e-commerce and are accessing web via mobile phones. There has been a 10% increase in the number of Internet users who used to watch online videos from the figure recorded in December 2008. Also, over a fourth users are now shopping online.

This rapid growth in the Internet market of China is the outcome of the increasing awareness among people about the benefits of Internet as well as the availability of cheap Internet access devices alongwith attractive packages.

RNCOS in its research report "Restructuring and 3G - New Dimensions for China Telecom Sector" states that the constant growth in the broadband access and the PC ownership will also assist the growth of the Internet industry in future, thereby promoting the further expansion of the Internet usage in China. More importantly, rural China is promising the major growth as government plans to cover over 20,000 villages in China through Internet by the end of 2010.

According to a Research Analyst at RNCOS, "Worldwide economic turmoil seems to have impacted the Chinese Internet market to the least extent as it is continuously witnessing the positive growth trend. However, there lie some big hurdles in front of the country - one of them being the Internet safety - on overcoming which the country can grow substantially as a major online market."

Related Market Research Reports:
Indian Telecom Analysis (2008-2012)
Emerging Rural Mobile Market in India
China Online Gaming Market Analysis