The Internet is becoming a hotbed for businesses as e-commerce takes off in China.

China's e-commerce transaction volume continued its growth streak, reaching 2.25 trillion yuan ($331.9 billion) in the first half this year and accounting for 62.5 percent of last year's total value, said the Hangzhou-based China e-Business Research Center, in a recent report.

B2B remains the most vibrant activity, accounting for 89 percent of the e-commerce market. Alibaba.com remains the market leader with a majority 54.6 percent of B2B market shares.

As a ripple effect from the financial crisis looms, small enterprises look for business opportunities on the Internet in order to save costs and bolster efficiency, said the report.

Alibaba.com raked in a juicy profit of 693 million yuan ($102.2 million) from January to June 2010, soaring nearly 40 percent, as the economy recovered and a rebound in exports boosted product listings on its website.

Meanwhile, online shopping is also experiencing a surge as Chinese consumers search for bargains on everything from cosmetics to clothes, said the report.