internet - government turns to e-business

A curious announcement from Xinhua today: the Chinese government has started its own e-business portal, China Suppliers. In that way an entity just under the State Council enters direct competition with both domestic and global e-business services like Alibaba and Global Sources. Those commercial services have been rather succesful and suddenly have to confront this government-funded competition.
Now, that used to be standard procedure in the past and is still a problem in a country where a neat division between the government and economic activities are lacking. But such a head-on competition on the highest level might send out a very wrong message.

Update: Here, even China Post, who has been notorious for mixing up business and politics, will be separating both. At least that is what they promise.