Facing Internet Age, China Retools Laws; Change Will Take Time; Country plays catch-up with other nations, as it prepares for WTO rules.(INTERNET & TECHNOLOGY)

Byline: SHEILA RILEY

China is retooling its legal system to speed up its transition to the global economy. That includes drafting new Internet laws.

Since China has 1.3 billion potential consumers, U.S. businesses have reason to be interested in the process. New legislation could impact the way the Chinese access information online and how they engage in electronic business.

"Globalization has just come crashing in on China," said Drew Thompson, a China expert at the Center for Strategic and International Studies, a Washington, D.C., think tank.

To meet World Trade Organization regulations, China is studying other countries' legal systems -- particularly Western ones, Thompson says.

There are numerous laws in the works.

"The legal system is playing catch-up to deal with issues such as the Internet, data protection, privacy, consumer credit information and intellectual property," Thompson said.