1. Internet development in China Dr. Lu Wang Dec. 2014

2. Overall Internet Development Individual Internet application How Internet affect people 01 02 03 Youth as Internet users 04 Online privacy and security 05

3. Survey The 33th and 34th Statistical Report on Internet Development in China The 2013 World Internet Project – Chinese Mainland Survey population Permanent residents at the age of 6 and above who have fixed-line telephones (including home phones, personal handy phones and dormitory phones) or cell phones. The sample size Sample Size: 60,000 survey samples in which 30,000 for fixed-line telephones and the other 30,000 for mobile phones, covering 31 provinces. Method Computer-Assisted Telephone Interviewing System （ CATI ） Survey population Permanent residents at the age of 6 and above who have fixed-line telephones (including home phones, personal handy phones and dormitory phones) or cell phones. The sample size Sample Size: 60,000 survey samples in which 30,000 for fixed-line telephones and the other 30,000 for mobile phones, covering 31 provinces. Method Computer-Assisted Telephone Interviewing System （ CATI ） Survey population Permanent residents at the age of 6 and above who have personal handy phones. The sample size Sample Size: 15,00 survey samples for mobile phones, covering 1 to 5 tier cities. Method Computer-Assisted Telephone Interviewing System （ CATI ） Survey population Permanent residents at the age of 6 and above who have personal handy phones. The sample size Sample Size: 15,00 survey samples for mobile phones, covering 1 to 5 tier cities. Method Computer-Assisted Telephone Interviewing System （ CATI ）

4. 632 million internet users 632 million Internet users, 46.9% Internet penetration rate. By the end of June 2014, China has had 632 million Internet users, and the number of new internet users during the previous half year is 14.42 million. The Internet penetration rate has reached 46.9% in China, increasing 1.1% compared to last year. 632 million Internet users, 46.9% Internet penetration rate. By the end of June 2014, China has had 632 million Internet users, and the number of new internet users during the previous half year is 14.42 million. The Internet penetration rate has reached 46.9% in China, increasing 1.1% compared to last year. Data source: The 34th Statistical Report on Internet Development in China

5. 527 million mobile Internet users Data source: The 34th Statistical Report on Internet Development in China

6. Mobile phone is the No. 1 Internet access device in China The number of mobile Internet users grow quickly and is the No.1 Internet access device in China. Mobile phone Internet access become a main impetus of development of Internet in China, more and more new Internet users choose to use the mobile phone as their internet device. The number of mobile Internet users grow quickly and is the No.1 Internet access device in China. Mobile phone Internet access become a main impetus of development of Internet in China, more and more new Internet users choose to use the mobile phone as their internet device. Data source: The 33th Statistical Report on Internet Development in China

7. Mobile phone narrow the rural-urban internet gap By Dec.2013, the rural Internet users had accounted for 28.6%. The rate of growth was 13.5% for rural Internet users and 8.0% for urban Internet users By Dec.2013, the rural Internet users had accounted for 28.6%. The rate of growth was 13.5% for rural Internet users and 8.0% for urban Internet users Mobile phone is the main Internet access devices for new rural Internet users, helping to narrow the gap between urban and rural Internet user scales. Data source: The 33th Statistical Report on Internet Development in China

8. Reasons for not going online: IT skills In China, the primary reason for not going online is “ Don’t know how to use/Confused”, while in United States the reason goes to “ No computer/Internet”. The dissemination and promotion of IT skills is the main task for Internet development in China. In China, the primary reason for not going online is “ Don’t know how to use/Confused”, while in United States the reason goes to “ No computer/Internet”. The dissemination and promotion of IT skills is the main task for Internet development in China. Data source: The 2013 World Internet Project – Chinese Mainland

9. Overall Internet Development Individual Internet application How Internet affect people 01 02 03 Youth as Internet users 04 Online privacy and security 05

10. Music used most, literature grew fastest 2014.62013.122012.12 Application User Scale(10,000) Applying rate User Scale(10,0 00) Applying rate User Scale(10,0 00) Applying rate Growth Rate Online music 4876177.2% 4531273.4%4358677.3%4.0% Online video 4387769.4% 4282069.3%3718365.9%15.2% Online literature 2893945.8% 2744144.4%2334441.4%17.6% Online game 3681158.2% 3380354.7%3356959.5%0.7% Among all those online entertainments, Chinese Internet users download or listen to music online most. Because of the mobile phone popularization and wireless network construction, online video and online literature also develop fast, with scale growth rates rising significantly. Among all those online entertainments, Chinese Internet users download or listen to music online most. Because of the mobile phone popularization and wireless network construction, online video and online literature also develop fast, with scale growth rates rising significantly. Data source: The 33th and 34th Statistical Report on Internet Development in China

11. High-flow mobile entertainment developed rapidly 14.3 % 54.3 % 29.7 % 6.6 % Mobile video grew rapidly, becoming the fifth biggest application of mobile Internet. The growth of online game users show a limited space, but the mobile online games show a trend of rapid growth, which indicates that online game industry have shifted from pc to the mobile ends. Mobile video grew rapidly, becoming the fifth biggest application of mobile Internet. The growth of online game users show a limited space, but the mobile online games show a trend of rapid growth, which indicates that online game industry have shifted from pc to the mobile ends. Data source: The 33th Statistical Report on Internet Development in China

12. Chinese Internet users go online for entertainment more Compared with the United States, more proportion of Internet users in China go online for entertainment at least monthly. But the same thing is in both countries users download or listen to music online most among the online entertainment applications. Compared with the United States, more proportion of Internet users in China go online for entertainment at least monthly. But the same thing is in both countries users download or listen to music online most among the online entertainment applications. Data source: The 2013 World Internet Project – Chinese Mainland

13. Utilization ratio of E-commerce kept rising steadily 2014.62013.122012.12 Scale Application User Scale(10,000) Applying rate User Scale(10,000) Applying rate User Scale(10,000) Applying rate Growth Rate Online buying 3315152.5% 3018948.9%2420242.9%24.7% Online payment 2922746.2% 2602042.1%2206539.1%17.9% Online bank 2718843.0% 2500640.5%2214839.3%12.9% Travel booking 1896030.0% 1807729.3%1116719.8%61.9% Group buying 1482723.5% 1406722.8%832714.80%68.9% E-commerce applications maintain a high development speed: the user scale of online shopping, online payment, online banking and e-Commerce applications rise steadily. Online buying is the most utilized e-commerce application in all, and travel booking and group buying are the two fastest developed applications. E-commerce applications maintain a high development speed: the user scale of online shopping, online payment, online banking and e-Commerce applications rise steadily. Online buying is the most utilized e-commerce application in all, and travel booking and group buying are the two fastest developed applications. Data source: The 33th and 34th Statistical Report on Internet Development in China

14. Mobile business manifests huge potential, powerful supplement for PC-end 15.7% 11.9% 10.5% 3.2% 11.7% Mobile online shopping develop rapidly in the mobile–end business market, with a user size reaching 144 million. Mobile online payment also rise greatly attributed to the whole mobile e-commerce growth and new technologies or new form of payment in mobile-end. Mobile online shopping develop rapidly in the mobile–end business market, with a user size reaching 144 million. Mobile online payment also rise greatly attributed to the whole mobile e-commerce growth and new technologies or new form of payment in mobile-end. Data source: The 33th Statistical Report on Internet Development in China

15. Paying bills online more in China Compared with United States, only paying bills online is more utilized by Internet users in China. The United States Internet users are more going online for banking\ investing and travel booking. Compared with United States, only paying bills online is more utilized by Internet users in China. The United States Internet users are more going online for banking\ investing and travel booking. Data source: The 2013 World Internet Project – Chinese Mainland

16. IM is the N0.1 Internet application 2014.62013.122012.12 Scale Application User Scale(10,00 0) Applying rate User Scale(10,00 0) Applying rate User Scale(10,000) Applying rate Growth Rate Instant Messaging 5642389.3% 5321586.2%4677582.9%13.8% Micro blog 2753543.6% 2807845.5%3086154.7%-9.0% Social networking websites 2572240.7% 2776945.0%2750548.8%1.0% Blog 4443070.3% 4365870.7%3729966.1%17.0% E-mail 2686742.5% 2592142.0%2508044.5%3.4% BBS 1240719.6% 1204619.5%1492526.5%-19.3% Instant messaging is the No.1 Internet application and have a continuously rising utilization. While Micro-blog, social networking and BBS Internet application had a continuously declining utilization ratio. Instant messaging is the No.1 Internet application and have a continuously rising utilization. While Micro-blog, social networking and BBS Internet application had a continuously declining utilization ratio. Data source: The 33th and 34th Statistical Report on Internet Development in China

17. Many users of Micro blog, SNS shift to IM The proportion of the reduced users shift to other applications Micro Blog Social networking website Instant messaging 20.3% 37.4% 32.6% 521 million users 97.9 percent of all IM users 521 million users 97.9 percent of all IM users 375 million users 70.4 percent of all IM users 375 million users 70.4 percent of all IM users Data source: The 33th Statistical Report on Internet Development in China

18. Communication is the mainstream mobile application Communication applications rank the first among all mobile applications in terms of user size and utilization ratio. With its service feature closely combined with the mobile phone features, mobile instant messaging developed rapidly. Communication applications rank the first among all mobile applications in terms of user size and utilization ratio. With its service feature closely combined with the mobile phone features, mobile instant messaging developed rapidly. Data source: The 33th Statistical Report on Internet Development in China

19. Email most used in US, while IM most used in China Comparing how respondents use online communication at least weekly (several time a day, daily or weekly) shows that the most frequently used application is instant message in China, while Email in the United States. Data source: The 2013 World Internet Project – Chinese Mainland

20. Overall Internet Development Individual Internet application How Internet affect people 01 02 03 Youth as Internet users 04 Online privacy and security 05

21. The most important information sources Large majorities of users consider the Internet as an important or very important source of information in China Data source: The 2013 World Internet Project – Chinese Mainland

22. Greatly increased the social contact In China, going online has greatly increased people’s contact with others, especially communication with those people who share same profession and hobbies.

23. Plays an important role in political process In China, Internet provide a new channel for Chinese to obtain and analysis the politics. Internet promote people’s engagement with public officials and political process, especially people can have more say in government behavior and can better understand politics. In China, Internet provide a new channel for Chinese to obtain and analysis the politics. Internet promote people’s engagement with public officials and political process, especially people can have more say in government behavior and can better understand politics. Data source: The 2013 World Internet Project – Chinese Mainland

24. Overall Internet Development Individual Internet application How Internet affect people 01 02 03 Youth as Internet users 04 Online privacy and security 05

25. 256 million internet users 256 million youth Internet users, accounting 71.8% for whole youth people. By the end of 2013, China has had 256 million youth Internet users (under age 25), and the number of new youth users during the year is 21.76 million, with a growth rate of 9.3%. 256 million youth Internet users, accounting 71.8% for whole youth people. By the end of 2013, China has had 256 million youth Internet users (under age 25), and the number of new youth users during the year is 21.76 million, with a growth rate of 9.3%. Data source: 2013 Statistical Report on Youth Internet Behaviors in China, CNNIC

26. Youth Internet Users’ characteristics Age structure of youth Internet users Gender structure of youth Internet users Education structure of youth Internet users Urban and rural structure of youth Internet users

27. Youth Internet users’ behaviors Time (hours) Elementary school students Middle school students College students Non- students Youth users total 2012 6.713.322.823.618.4 2013 10.719.425.125.620.7 Access of youth Internet users Use of Internet device for youth Internet users Education structure of youth Internet users in Internet bars Weekly average online duration of youth Internet users

28. Application Elementary school student Middle school student College student Non-student Whole youth Whole Internet users Gap of the previous two Search engine 73.8%79.3%91.0%79.9%80.5%79.3%1.2% Instant messaging73.3%91.9%97.7%93.6%91.1%86.2%4.9% Microblog27.0%59.7%76.7%53.5%54.3%45.5%8.8% Social networking site 19.2%51.4%60.0%49.6%45.7%45.0%0.7% Blog/personal space 58.0%80.7%86.5%83.0%76.7%70.7%6.0% Email22.8%35.0%68.7%39.8%37.6%42.0%-4.4% BBS15.3%19.2%30.6%21.2%21.4%19.5%1.9% Online music82.0%83.3%91.3%81.1%83.7%73.4%10.3% Online video62.6%76.0%81.9%71.1%72.9%69.3%3.6% Online literature25.1%45.4%61.2%43.9%45.0%44.4%0.6% Online game69.5%75.2%63.5%55.1%65.7%54.7%11.0% Online shopping17.8%51.2%77.0%56.8%50.0%48.9%1.1% Online payment10.6%39.8%70.3%46.4%39.0%42.1%-3.1% Online banking9.1%35.2%70.4%46.5%37.0%40.5%-3.5% Travel booking6.8%14.7%50.1%26.4%20.6%29.3%-8.7% Group purchase3.0%15.2%43.0%15.4%17.7%22.8%-5.1% Overall Internet Applications of youth Internet users in 2013 The red numbers mean higher than total Internet users.

29. Information searching Application Elementary school student Middle school student College student Non-studentWhole youth Whole Internet users Search engine 73.8%79.3%91.0%79.9%80.5%79.3% Among all the youth Internet users, college students use search engine to obtain information most, with a utilization ratio of 91.0%. By the end of 2013, utilization ratio of search engine by youth Internet users in China is 80.5%, having declined 3.6% since the end of 2012. Among all the youth Internet users, college students use search engine to obtain information most, with a utilization ratio of 91.0%. By the end of 2013, utilization ratio of search engine by youth Internet users in China is 80.5%, having declined 3.6% since the end of 2012. Data source: 2013 Statistical Report on Youth Internet Behaviors in China, CNNIC

30. Online communication All the applications have higher utilization ratios for youth users than those of whole Internet users, except Email. Instant messaging has the highest utilization ratio for youth users, while the utilization ratio of Microblog of youth users outnumbered that of whole Internet users by 9%. College students have higher utilization ratios in all the applications than other groups of youth users. All the applications have higher utilization ratios for youth users than those of whole Internet users, except Email. Instant messaging has the highest utilization ratio for youth users, while the utilization ratio of Microblog of youth users outnumbered that of whole Internet users by 9%. College students have higher utilization ratios in all the applications than other groups of youth users. Application Elementary school student Middle school student College student Non-studentWhole youth Whole Internet users Instant messaging73.3%91.9%97.7%93.6%91.1%86.2% Microblog27.0%59.7%76.7%53.5%54.3%45.5% Social networking site19.2%51.4%60.0%49.6%45.7%45.0% Blog/personal space58.0%80.7%86.5%83.0%76.7%70.7% Email22.8%35.0%68.7%39.8%37.6%42.0% BBS15.3%19.2%30.6%21.2%21.4%19.5% Data source: 2013 Statistical Report on Youth Internet Behaviors in China, CNNIC

31. Online entertainment Utilization ratios of all the applications for youth users have outnumbered those of whole Internet users, with online game by 11%, and online music by 10.3%, etc. College students use online music most, with a utilization ratio of 91.3%. Middle school students use online game most, with a utilization ratio of 75.2%, and higher than that of whole youth by 9.5%. Utilization ratios of all the applications for youth users have outnumbered those of whole Internet users, with online game by 11%, and online music by 10.3%, etc. College students use online music most, with a utilization ratio of 91.3%. Middle school students use online game most, with a utilization ratio of 75.2%, and higher than that of whole youth by 9.5%. Application Elementary school student Middle school student College student Non-studentWhole youth Whole Internet users Online music82.0%83.3%91.3%81.1%83.7%73.4% Online video62.6%76.0%81.9%71.1%72.9%69.3% Online literature25.1%45.4%61.2%43.9%45.0%44.4% Online game69.5%75.2%63.5%55.1%65.7%54.7% Data source: 2013 Statistical Report on Youth Internet Behaviors in China, CNNIC

32. E-commerce Utilization ratios of all the applications for college students are all higher than those of whole Internet users; Especially online banking with a utilization ratio of 70.4% which is 29.9% higher than whole Internet users, and 33.4% higher than whole youth users. Utilization of all the e-commerce applications among the middle school students and below, are comparatively low, due to their dependent economic sources. Utilization ratios of all the applications for college students are all higher than those of whole Internet users; Especially online banking with a utilization ratio of 70.4% which is 29.9% higher than whole Internet users, and 33.4% higher than whole youth users. Utilization of all the e-commerce applications among the middle school students and below, are comparatively low, due to their dependent economic sources. Application Elementary school student Middle school student College student Non-studentWhole youth Whole Internet users Online shopping17.8%51.2%77.0%56.8%50.0%48.9% Online payment10.6%39.8%70.3%46.4%39.0%42.1% Online banking9.1%35.2%70.4%46.5%37.0%40.5% Travel booking6.8%14.7%50.1%26.4%20.6%29.3% Group purchase3.0%15.2%43.0%15.4%17.7%22.8% Data source: 2013 Statistical Report on Youth Internet Behaviors in China, CNNIC

33. Youth mobile Internet users 100 million 221 million youth mobile Internet users, 83.6% of the whole youth Internet users Until Dec. 2013, the number of youth mobile Internet users in China was 221 million, having incerased 12.8% since Dec. 2012. Mobile phone has become the main Internet device for youth. 221 million youth mobile Internet users, 83.6% of the whole youth Internet users Until Dec. 2013, the number of youth mobile Internet users in China was 221 million, having incerased 12.8% since Dec. 2012. Mobile phone has become the main Internet device for youth. Data source: 2013 Statistical Report on Youth Internet Behaviors in China, CNNIC

34. Mobile Internet applications of youth Internet users in 2013  Youth Internet users prefer using mobile phones for instant communicate and online entertainment most;  Instant messaging, online search and online music are the top three applications by mobile youth Internet users, with utilization ratios of 90.6%, 79.4% and 70.2% respectively.

35. Overall Internet Development Individual Internet application How Internet affect people 01 02 03 Youth as Internet users 04 Online privacy and security 05

36. Less concerns about security during purchasing in China In China, not so many Internet users express much concern about the security of their credit card information when buying online. Data source: The 2013 World Internet Project – Chinese Mainland

37. Less concerns about privacy in China Compared with United states, Internet users in China are less concerned with their online privacy, both the percents of worried about government and corporation’s checking are lower. In China, Internet users are more concerned about government, while in Unite States is opposite --- more concerned with corporation. Compared with United states, Internet users in China are less concerned with their online privacy, both the percents of worried about government and corporation’s checking are lower. In China, Internet users are more concerned about government, while in Unite States is opposite --- more concerned with corporation. Data source: The 2013 World Internet Project – Chinese Mainland

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