This June 8 editorial by Chinese journalist Tang Yuankai in the Bangladesh The New Nation points out a few of the ways that Chinese internet companies are creating their own business models, and also how these new business models come into conflict with Wall Street analysts’ ideas about how to run a business.
Alibaba is devoted to reducing trading costs
between businessmen. Ebay focuses on “e-business auctions.” 51job.com
is dedicated to offering a cyber platform for employers and employees.
Netease sells a lot of Chinese-style products and conducts its business
in a way that resonates with China’s market. It offers photo and ring
tone downloading and other value-added services for cellphone users.
Its profits mainly come from services of messages, cyber games and
other new fields, instead of advertising stressed by Wall Street.
Zhang Chaoyang, CEO and President of Sohu.com,
one of China’s chief web portals, pointed out that the people on Wall
Street are not users of the Chinese Internet, like Sohu.com, so it’s
impossible to see the true value of the best websites here and the
development trend. He said they only judge a Chinese cyber company by a
short-term performance in making profits, which caused Chinese listed
cyber companies to be underestimated for years.