The Other Digital Divide: Town vs. Country

One other factor in the Chinese digital divide is the higher usage in the town compared to the countryside (link is PDF).  As the more remote parts of the US and the UK are still off broadband, this is not that surprising.  Add this to the fact that the countryside is a lot poorer than the cities this makes even more sense.

This could provide a crick on internet development in China as the low hanging fruit have mostly been plucked, although with the growth of cheaper technology such as mobile internet transmission this may be less important than we think.

Still it is likely that we will see a greater reaching out to the countryside, and how this plays out we’re not at all sure.  Our pet theory is that the high savings rate of the Chinese countryside combined with the liberalisation of rules on Chinese citizens investing overseas may mean that there could be a boom in investment products while travel and luxury cars may not see any great growth due to logistics.

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