while that in rural areas was 33.1%, with an urban-rural gap of the penetration rate increasing from 34.2% in 2015 to 36.0%. With a small urban-rural gap of utilization ratio of basic Internet applications including instant messaging and online entertainment, an about 4% urban-rural gap of utilization ratio is reflected in instant messaging, online games and online music. But the urban-rural gap of utilization ratio shown in online shopping, payment and travel booking applications exceeds 20%. This situation shows that entertainment and communication applications are the main ones prompting rural residents to access the Internet and that rural netizens have potentials in Internet-based consumption fields. (V) Analysis of Non-Internet Users' Status Quo Rural residents form the major part of non-Internet users. By December 2016, there are 642 million non-Internet users in China, among which those in urban areas had took up 39.9% while those in rural areas 60.1%. Shortage of Internet skills and limited literacy level are major factors preventing non-netizens from accessing the Internet. The survey finds that 54.5% of non-netizens don’t access the Internet due to shortage of knowledge about computer or the Internet and 24.2% of those not because they don’t master pinyin or the Chinese phonetic alphabet; 13.5% of non-Internet users without the demand for or the interest in the Internet don’t get access to the Internet; 12.8% of non-netizens without computers or local access cannot access the Internet. Reasons Why Non-internet Users Don't Access the Internet 80% 60% 54.5% 40% 24.2% 20% 17.8% 13.8% 13.5% 8.0% 4.8% 0% Lack of Not master Pinyin No time for too old or too No need/interests No Internet access No local access to computer/Internet Internet surfing young devices, the Internet knowledge e.g.computers Source： Statistical Survey on Internet Development in China 2016.12 Figure 40 Reasons Why Non-internet Users Don't Access the Internet 44 To prompt non-netizens to surf the Internet is to improve their Internet skills, reduce the The 39th Statistical Report on Internet Development in China