At the macroeconomic level, e-commerce diffusion would generate great demand for IT products including software and hardware. While a certain part of the demand would be captured by multinational corporations, China would utilize this growth in IT demand as an opportunity to nurture its indigenous manufacturing base. Certain indicators have pointed to the rapid growth of China’s manufacturing capacity in PC production, telecommunications equipment, software, and consumer appliances. On the application side, China is hoping to upgrade its enterprises to world standards through e-commerce and other IT infrastructures since this upgrading will determine whether Chinese enterprises can survive in the global market after China’s WTO concessions.