Political & Economic Factors Of Success In The E-Commerce Sector In China

China's e-Commerce market is considered nowadays as the fastest growing e-Commerce market in the world with 632 million consumers this year, and reaching to 730 million by 2016. It is in all aspects important to study the reasons behind the success of e-Commerce in China.Before China starts its transformation, the country was characterized by its underdeveloped level of infrastructures, its low levels of domestic consumption or the lack of technological access in the country. In the last three decades, the Chinese government in order to achieve a fast economic development – increasing the countries infrastructure, the access to high technology, or develop the economy–, has developed a series of supporting policies towards the development and spread of Internet and Electronic Commerce in China. As a result of these measures, and the development of the industry, today China is considered to be the first eCommerce industry in the world.Despite of the success of the industry, foreign E-commerce companies have had problems to enter in the market. This thesis analyses the reasons behind the failure of foreign e-Commerce firms in China. I demonstrate that China's characteristics, the position of the government towards the industry, and the market's understandings by e-Commerce firms have been the main reasons behind the success of e-Commerce firms in China.