China has just become the country with the largest number of citizens connected to the Internet, according to estimates published this week.

Beijing market research firm BDA China has extrapolated figures from the China Internet Network Information Center and from online market analyst Nielsen/NetRatings to conclude that China has overtaken the US at around the 220 million-user mark.

According to official figures, the number of Chinese user online grew by 53.3% during 2007, and is expected to reach 280 million by the end of the year.

“A buoyant economy, massive investments in broadband infrastructure and strong consumer demand for applications including online games, instant messaging and online-music and online-video sharing are fuelling China's rapid Internet growth,” said BDA chairman Duncan Clark.

The value of Internet content – principally created through advertising – is still far greater in the US than China. But Clark predicts that in coming years China will begin to innovate new methods for monetising Internet traffic.

“We expect China to emerge as part of an Asian ‘New California' where – together with highly developed Asian markets such as Japan and South Korea - innovative applications and companies help shape consumer trends globally,” he said.

For more on the impact of China’s economic boom on the IT industry, look out for the March issue of Information Age.

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