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Chinas e-commerce development is hindered by three problems--online payment, existing taxation and logistics service, areportby the Ministry of Commerce says.The report says thedevelopment ofe-commerce also greatly relies on informationtechnology andnetwork establishment, relevant laws, and socialcredibilitysituation.The report made an analysis of the threeobstacles.Online payment plays a key role in e-commerce, and asafe,convenient, and efficient online payment system is
essential.However, safety authentication, one of the main componentof onlinepayment system, is inadequate in China.Although many bankshavealready set up their own financial authentication centres,therelacks a unitive and authoritative nationwide authenticationcentre,leading to many cases of cross authentication,repeatedauthentication and a waste of resources.Besides, due to thelack oflegal protection in this field, arbitration andliabilitycognizance are difficult when disputes arise. In addition,theefficiency of online payment in China is still low:paymentvalidation from the bank takes a long time (about 10 days),thecharge is too high (5 per cent service fee of creditcardstransaction), and there are too many restrictions. All thesehinderthe development of e-commerce in China.Second is the problemin theexisitng taxation. While e-commerce is a brand new type ofbusinessmode differing from the traditional one, China has no taxruletargeting e-commerce trade. The report urged the governmenttodraft relevant laws so as to ensure the healthy developmentofe-commerce in the future.In fact, countries with differenteconomiclevels should have different taxation towards e-commerce.Forexample, e-commerce businesses, digital products andinternetaccess are tax-free in the United States, while theEuropean Unionpractices a clear and neutral taxation system bycollecting valueadded tax only from e-commerce businesses.Third isthe limitationin the logistics system. Among the corporationsproviding logisticservices for e-commerce business in China, some1,000 aretraditional ones and their service quality is not goodenough;therefore, the need to provide a speedy transaction anddeliveryregardless of space and distance can hardly befulfilled.The reportsuggested that the government should take anactive role inencouraging and supporting the e-commerce oftradtionalcorporations. Besides, it also emphasized the businessnature ofe-commerce, and warned that e-commerce business activitiescannotbe done by simply building networks.(China Daily)
（信息来源：MOFTEC英文版子站）
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