eBay and EachNet, its Chinese partner, have pursued a focused strategy to further build the EachNet marketplace and the Chinese e-commerce environment.

Over the past two years the companies have focused on investing in people and transferring knowledge and technology in an attempt to build a dynamic online marketplace in China. The partnership of the two e-commerce pioneers began in 2002 with a goal of combining global experience with local knowledge to provide a world-class online trading experience to Chinese consumers.

By innovating in the areas of seller tools, customer support and online safety, eBay and EachNet continue to improve the level of e-commerce in China. However, the companies' main focus has been on strengthening the online community of buyers and sellers. Both pointed out that the EachNet marketplace is only part of the e-commerce equation. Developments in the last two years from national infrastructure enhancements to online trust have helped create a stable environment for the growth of e-commerce. They cited examples such as the increased use of e-commerce by small and medium sized enterprises, growing trade among different regions, and a burgeoning market for both new and used items.

At the end of 2003, EachNet had 4.3 million registered users in China who traded items worth a total of US$124 million last year.