China Surpasses U.S. in Number of Internet Users

SHANGHAI — China said the number of Internet users in the country reached about 253 million last month, putting it ahead of the United States as the world’s biggest Internet market.
The estimate, based on a national phone survey and released on Thursday by the China Internet Network Information Center in Beijing, showed a powerful surge in Internet adoption in this country over the last few years, particularly among teenagers.
The number of Internet users jumped more than 50 percent, or by about 90 million people, during the last year, said the center, which operates under the government-controlled Chinese Academy of Sciences. The new estimate represents only about 19 percent of China’s population, underscoring the potential for growth.
By contrast, about 220 million Americans are online, or 70 percent of the population, according to the Nielsen Company. Japan and South Korea have similarly high percentages.
Political content on Web sites inside China is heavily censored, and foreign sites operating here have faced restrictions. But online gaming, blogs, and social networking and entertainment sites are extremely popular among young people in China.
The survey found that nearly 70 percent of China’s Internet users were 30 or younger, and that in the first half of this year, high school students were, by far, the fastest-growing segment of new users, accounting for 39 million of the 43 million new users in that period.
With Internet use booming, so is Web advertising. The investment firm Morgan Stanley says online advertising in China is growing by 60 to 70 percent a year, and forecasts that by the end of this year, it could be a $1.7 billion market.
China’s biggest Internet companies, including Baidu, Sina, Tencent and Alibaba, are thriving, and in many cases are outperforming the China-based operations of American Internet giants like Google, Yahoo and eBay.
“The Internet market is the fastest-growing consumer market sector in China,” said Richard Ji, an Internet analyst at Morgan Stanley. “We are still far from saturation. So the next three to five years, we’re still going to see hyper-growth in this market.”
Baidu, for instance, said on Thursday that its second-quarter net profit had jumped 81 percent. During that period, Baidu had a 63 percent share of China’s search engine market, while Google had about 26 percent, with Yahoo trailing far behind, according to iResearch, a market research firm based in Beijing.
Tencent, a popular site for social networking and gaming, now has a stock market value of $15 billion, making it one of the world’s most valuable Internet companies. In comparison, Amazon.com is valued at about $30 billion.
One measure of the growth of the Internet here, and its social and entertainment functions, is the popularity of blogs.
The site of China’s most popular blogger, the actress Xu Jinglei, has attracted more than 174 million visitors over the last few years, according to Sina.com, the popular Web portal, which posts a live tally. According to Sina, 11 other bloggers have also attracted more than 100 million visitors in recent years.
The Internet’s popularity often poses serious challenges to the government. Online gambling, pornography, videos of protests and addiction have led to regular campaigns to crack down on what the government views as vices. But Internet users have also used the Web for nationalist campaigns to criticize the Western news media or foreign companies, as was the case after riots broke out in Tibet this year.
While several organizations had projected that China would surpass the United States in Internet users this year, the new survey results were the first time a government agency had released figures showing China’s market to be larger than that of the United States.

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