China and Web 2.0

With the world's second-largest and fastest-growing Internet user population, China has become the next frontier for Web 2.0 activity. In recent months, MySpace, Yahoo! and Google have all made inroads into the Chinese market by either launching local versions of their sites or investing in China-based technology or social networking startups.

Venture capitalists are also heeding the call. Intel Capital, the financial services unit of the US semiconductor giant, invested an undisclosed sum — said to be in the millions of dollars — in fast-rising Chinese social network 51.com. Sequoia Capital, Redpoint Ventures, Highland Capital Partners, General Atlantic and IDG Technology Venture Investment have also staked claims on various Chinese Web 2.0 companies, according to articles in BusinessWeek and The Wall Street Journal.

By 2011, the number of Internet users in China is expected to grow to 246 million, up from 134 million in 2006, according to eMarketer estimates. This represents an average annual growth rate of 13% for the five-year period.

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