Li Yanhong: Web2.0 Boom Similar to Internet Bubble a Few Years Ago - Sina

At the Internet Conference "2006 International Internet High-Level Summit" held today, Robin Li, Chairman and CEO of Baidu, stated that the so-called Web 2.0, which has been extremely popular in the past year or so, has attracted too much venture capital investment, and this situation is similar to the internet bubble at the beginning of 1999 and 2000.

Robin Li said that the challenge for Web 2.0 lies in the lack of a business model. Why is this a challenge faced by China's Internet rather than a global issue? Because too much venture capital has flowed into China's Web 2.0 sector. With such a large amount of capital coming in, they need returns. Not having a business model for one year might be okay, not having it for two years might also be acceptable, but not having it for three to five years will lead to problems.