Google could give Baidu a serious run for its money in China
Speculation on the US internet giant’s return has centred on its reported development of mobile search and news aggregation apps designed to meet China’s strict censorship laws
Google’s potential return to China with a censored search app, after almost a decade since it left the country, could mark the strongest challenge yet to domestic online search market leader Baidu.
US-based Google has been developing a censored mobile search app that would comply with Chinese regulations, though whether that would be rolled out still depends on approval from the government, a person familiar with the plans told the South China Morning Post. The plan for a search app was first reported by The Intercept, while The Information reported Google also had plans for a news-aggregation app for China.
“Baidu could lose significant search traffic and sales share if Google returns to China in six to nine months,” wrote Bloomberg Intelligence analyst Ling Vey-sern in a research note.
Google had some 14 per cent of China’s search traffic and 33 per cent revenue share before the company’s exit from the market in 2010, according to the note. Baidu’s search engine had 79 per cent of traffic and 63 per cent of search-related sales at that time.
Google’s change of approach in dealing with China’s rigid censorship laws further highlights how important the mainland Chinese market is perceived by major hi-tech companies in the US.
