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.
The introduction of the Xinyongbao website credit rating system reflects China’s efforts to strengthen trust and security within its expanding e-commerce market. By monitoring website credentials, payment systems, and product information, the initiative aims to reduce online fraud and provide consumers with greater confidence when shopping online. As e-commerce continues to grow, solutions that promote transparency and website credibility will play an increasingly important role in supporting sustainable digital commerce.