The system, named Xinyongbao, is able to monitor website qualifications, payment system details and product information, according to the Zhejiang Administration for Industry and Commerce.
Data from the China E-commerce Research Center shows that by December 2010, the turnover of China’s national e-commerce market reached more than 4.5 trillion yuan, an increase of 22 percent compared with 2009.
However, Internet fraud, phishing and Internet pyramid schemes also endanger Internet security and socio-economic stability. The China Internet Network Information Center received a total of 23,455 phishing reports and handled a total of 22,573 phishing sites in 2010.
The abundance of fraudulent Web sites in China, partially as a result of the government’s failure to crack down on online fraud, is one of the reasons that force most consumers to shop from only a handful number of well known eCommerce web sites. The new initiative hopes to further drive China’s booming eCommerce market.
