Struggle of Google in China

Google, despite its all efforts, is finding it hard to compete with Baidu.com. Chinese company Baidu.com owns nearly 60% of China's internet search market while american Google just owns 25% of this market.

Google hired Kai-Fu Lee a seasoned executive from Microsoft to charge up its operation in China. However, Microsoft did its best to prevent Lee from joining Google by bringing a court trial.

Kai-Fu Lee is working on strategy of partnerships with local web companies, to isolate Baidu.com and to extract better operating deals from Chinese government in future: one such revenue-sharing partnership is with Tianya, a Chinese social-networking site, and others similar are with portals run by SINA Corp. and Tom Online Inc. of HongKong billionaire Li Ka-Shing.


(source: http://www.businessweek.com/globalbiz/content/aug2007/gb20070830_573882.htm?chan=globalbiz_asia+index+page_technology )