Shaun Rein at Businessweek explains:

Many analysts argue that Chinese consumers are conservative spenders and not willing to buy on credit or engage in e-commerce. The numbers initially seem to support such arguments as China's household savings rate sits at 40% vs. less than 1% in the U.S. Credit-card penetration is low, with fewer than 50 million cards in circulation for an emerging middle class of 250 million.

While China's Internet users will hit more than 140 million by the middle of 2007 and will overtake the U.S. as the largest group within the next few years, critics believe that e-commerce will never take off here because, as a matter of culture, Chinese do not like it. But do these numbers and conclusions incorporate the seismic shifts in consumer habits in China that have been taking place in the last decade? The answer is a resounding no.

To read more:

http://www.businessweek.com/globalbiz/content/feb2007/gb20070208_810426.htm