According to a China Internet Network Information Center (CNNIC) report released on January 17, the country's online population gained another 73 million in 2007-a yearly growth rate of 53.3 percent-to reach a record high of 210 million users.

China is adding 200,000 more Internet users daily and quickly approaching the day when it will surpass the United States numerically, which currently has 215 million netizens.

Liu Bing, Director with the Department of Internet Research and Development under CNNIC, says China's economic boom is the major factor in the surge.

"These days, the concept of the Internet as a recreation tool is gaining currency and an increasing number of people are turning to it for online entertainment," Liu said. "The Internet's low cost amid all-round surging prices gives people an extra incentive to go on the Internet for fun."

Ever popular

In past CNNIC reports, those between 18-30 with high school education or above made up the majority of Internet users. However, 2007 was a turning point for the diversification of the online population.

According to the report, the numbers of netizens aged under 18 beginning to use the Internet in 2007 posted the most robust growth, led by a high proportion of middle and primary school users. Furthermore, the population of netizens over 30 has also begun to swell. Internet fever is spreading through all age groups, and now reaches people in low-income and low-education groups.

Liu ruled out possible changes to current Internet revenue streams in China, which could arise from changes in the composition of Internet population.

"Advertisements, search engines, online games and value-added mobile services will remain the main sources of income for the Chinese Internet industry," he said. "Constrained by their hi-tech thresholds, businesses like e-commerce and online education are less likely to see sharp profit growth."

Rural vitality

Rural areas also made significant contributions to the increase in China's online population. In 2007, rural netizens numbered 52.62 million, representing an exponential annual growth rate of 127.7 percent, far exceeding the 38.2-percent growth rate in urban areas. This means 40 percent of the 73 million new users last year were from rural areas.

"This could not have happened without a helping hand," Liu said. In line with the 11th Five-Year Plan, the Chinese Government has earmarked 3 billion yuan ($416.67 million) to incorporate all villages and towns into the fixed-line phone and Internet network. Rural governments have already begun installing Internet information kiosks in some areas. Meanwhile, the Ministry of Information Industry distributed universal service funds in collaboration with other ministries in an attempt to spur the development of rural telecommunication technology.