Around the Net

Baidu Leads Google, Yahoo In China

It's almost unthinkable here in the U.S.--but in China, Google, Yahoo and the rest are getting clobbered in search by Baidu.com, the fourth-most trafficked Web site in the world, owing to China's massive Web population. Part of the secret of Baidu's success has been its ability to get support from the Chinese government, which imposes strict rules and censorship on companies operating in the country. But will Baidu be able to retain its lead? With a market cap of $3 billion, it's a minnow compared to Google and Yahoo, which have better technology and a more robust set of global resources. However, analysts point out that Baidu is not unique in China. "The globally dominant U.S. Internet companies have failed to take the No. 1 market-share position in any category," says Jason D. Brueschke, a Citigroup analyst, of the Chinese market. "They came with more money and major brand names. So there's something fundamentally different about this market." Whatever it is, Brueschke and others believe that Baidu will retain its lock on the top spot in Chinese search. Google has responded by opening shop right next door to Baidu in Beijing. We know the American Internet giant doesn't like to lose, but Brueschke is unconvinced. "The American Internet giants are dominant in the U.S. and dominant in Europe, and then they come to China and fail. What is Google going to do differently?"

Read the whole story at The New York Times »

Next story loading loading..