China’s net users to grow 30% to 134 million by end of 2005.

This is according to research firm Analysis International. The firm pegs China’s Internet users at 103 million at the end of 2004 versus 94 million estimated by the China Internet Network Information Center. The CINIC has been the most widely followed source for Chinese Internet usage trends. Nonetheless, the forecast will solidify China’s position as the second most populous Internet nation. No wonder why eBay, Amazon, IAC/InterActiveCorp, Google, and Yahoo!, in addition to other major offline U.S. companies are racing to gain a foothold in this market. All prudent moves in my view as long as structural and payment issues subside in the coming years. Plus remember that the Chinese government has full authority to close any firm it thinks violates Chinese policies and standards, especially companies that control mediums – hint, hint, Yahoo and Google.