According to a report in Reuters, both eBay and Yahoo have made begun to target China's online auction market–eBay operating through the Chinese company EachNet, while Yahoo signed a JV with website operator Sina.com in January.

Meg Whitman, CEO of eBay told reporters in Hong Kong recently that the "Over the next 10 to 15 years China is going to be an explosive area. We want to set the table for a very strong business over the long haul." EachNet is already in the process of being rebranded to add eBay's name.

Yahoo similarly announced earlier that it was on track to launch online auctions in China by the middle of 2004. "We will introduce that service in the next few months to consumers in China," company founder Jerry Yang told reporters in Beijing.

One of the biggest obstacles to e-commerce in China still remains, however, namely how to collect payments in a society where checks and credit cards are rarely used.