HONG KONG (03/15/2000) - U.S. electronic-commerce developer Commerce One Inc. yesterday announced it has lined up partnerships with seven major regional companies to kick off the China and Hong Kong hub of its Global Trading Web, an international business-to-business procurement exchange.
Commerce One signed a letter of intent with five prominent Hong Kong companies, a Hong Kong-based high-tech investment firm, and the Beijing city government's international trade holding company to form the joint venture.
Together, the companies will create a business-to-business e-commerce portal, build vertical trading hubs in several industries, and recruit affiliated businesses to join the exchange, according to a Commerce One statement issued yesterday.
Commerce One's partners in the venture include Hong Kong-based Sun Hung Kai Properties Ltd. spin-off Sunevision Holdings Ltd., Jardine Matheson Co. unit Jardine Internet, Swire Group's Swire Net Ventures, New World China Enterprises Projects, and The Wharf (Holdings) Inc. division I-Cable Ventures. Also participating are venture-capital firm WI Harper, which links Asian and Silicon Valley firms, and conglomerate Beijing Enterprises Holdings Ltd.
The participating companies pledged to initially invest $40 million in the e-commerce venture, according to Commerce One's statement.
There are more than 30 trading portals already operating in the Global Trading Web, according to Commerce One. The company already has partnerships in Asia with Sinar Mas Group of Indonesia, Sesami.com in Singapore, Nissho Iwai of Japan and joint venture Com2B in Taiwan.
Internet startups and established companies alike are scrambling to get a piece of a Greater China e-commerce market that is forecast to boom over the next several years.
Hong Kong carrier Cable & Wireless HKT Ltd. Tuesday joined with Oracle Corp. to create an e-commerce marketplace for the region. [See "Oracle, HKT Ally for Greater China B2B Market," March 14.]Commerce One, in Walnut Creek, California, can be reached at +1-925-941-5000 or online at http://www.commerceone.com/.