China satisfied with Google search engine tweaks

July 20 (Reuters) – China is satisfied that U.S. Internet giant Google Inc (GOOG.O) is complying with Chinese laws after it tweaked the way it directs users to an unfiltered search page, a senior official said on Tuesday.

The comments from a Ministry of Industry and Information Technology official largely echoed previous Chinese statements, but are still likely to be seen as good news for the company as Beijing has been coy about its long-term future in China.

Google is trying to achieve the delicate balance of ending self-censorship of searches, while holding onto its business foothold in a country where control of information has been key to ensuring the Communist Party’s decades in power.

Google’s market share in China continued to slip in the second quarter, falling to 27.3 percent from 29.5 percent in the first, according to data from research firm iResearch. [IDnTOE66I03Y]

Before its high-profile spat with Beijing, Google was slowly gaining ground on China’s top search engine Baidu (BIDU.O). At the end of last year, Google’s market share was 32.8 percent.

Guxiang, a company that operates Google’s websites in China, had committed to “abide by Chinese law,” and ensure the company did not provide illegal content, said Zhang Feng, head of the ministry’s communication development division.

“After examination, we have concluded that it has basically met the requirements according to the relevant laws and regulations,” Zhang told a news conference.

Google unexpectedly warned in January it might quit China over censorship concerns and after suffering a hacker attack it said came from within the country, but eventually terminated its Google.cn search service and started rerouting users to its unfiltered Hong Kong site. [ID:nSGE60C01H]

In early July the company ended automatic redirection, saying Beijing was unhappy about the system and would not renew Google’s operating license if it continued.

Visitors are now invited to click through to the Hong Kong page instead of being sent straight there. China’s firewall remains in place however, meaning most sensitive sites turned up on searches are inaccessible from within the country’s borders. [ID:nSGE6680F9]

Google’s move was seen as a sign that the firm would fight to hold onto as much of its China business as possible, and Beijing said earlier this month it had renewed its Chinese operating licence after the company “made improvements”. [ID:nTOE66A00R]

Guxiang accepted that government regulators will have the right to supervise content provided by the firm, Zhang said, declining to comment on directly on Google’s provision of the link to its uncensored Hong Kong page.

“As for the question of Hong Kong, this is an operational act made by the company itself,” he added, without elaborating.

China’s decision to allow Google to continue operating in China apparently resolved a months-long censorship dispute that had threatened the U.S. company’s future in the world’s top Internet market by users.

The move also removed another thorn in U.S.-China relations and reflects Beijing’s desire to be seen as friendly to major foreign firms in spite of ideological differences, analysts said. (Reporting by Ben Blanchard, Editing by Emma Graham-Harrison and Jonathan Thatcher)

China search market grows 53 pct in Q2 -research

July 19 (Reuters) – China’s search market by revenue grew 53.2 percent in the second quarter to 2.64 billion yuan ($390 million), data from technology research firm iResearch showed on Monday.

Baidu’s (BIDU.O) share of the market rose to 70.8 percent in the second quarter from 67.8 percent in the first quarter, as the firm ate into Google’s (GOOG.O) market share.

Google, which has faced difficulty in China since threatening in January to quit the market on censorship concerns and after a serious hacking episode, saw its market share fall to 27.3 percent in the second quarter, down from 29.5 percent in the first.

Before its high-profile spat with Beijing, Google was slowly gaining ground on Baidu. In the fourth quarter of 2009, Google’s market share was 32.8 percent versus Baidu’s 64.8 percent.

Baidu told Reuters earlier this month it saw only marginal gains if China ousted rival Google Inc from the Web search market, and was banking instead on rapid Internet adoption in that country.

Baidu reports its second-quarter results on July 21. ($1=6.775 Yuan) (Reporting by Melanie Lee; Editing by Jonathan Hopfner)

UPDATE 1-Baidu to hire U.S. engineers to work in China

SHANGHAI, June 29 (Reuters) – Baidu Inc, China’s leading search engine, will start hiring software engineers directly from the United States early next month, as it seeks to expand its technological capabilities and raise its global profile.

Baidu (BIDU.O) stands to be the biggest beneficiary in China’s search sector after Google Inc (GOOG.O) relocated its China servers to Hong Kong following a high-profile spat with Beijing over censorship and hacking.

Baidu would hire 30 mid-to senior-level software engineers from Silicon Valley at a job fair on July 10 to drive new technology projects, its first direct hiring from the United States, a Baidu spokesman told Reuters on Tuesday.

“Baidu believes that talent is the key to our success as a company, and we go where ever the best talent can be found, whether here in China or in Silicon Valley,” Zheng Bin, Baidu’s human resources director said in a statement to Reuters.

“As we develop more and more advanced search technologies, our need for world-class talent will only continue to increase.”

Baidu is a household name in China but not well known overseas. Baidu Japan, the firm’s venture into the Japanese search market, has been loss-making ever since its inception.

The hiring is significant as it shows that Baidu, traditionally domestically focused, is eager to raise its profile overseas and plug into talent outside China. The move also comes as other Chinese Internet firms, such as Tencent Holdings (0700.HK), China’s largest Internet firm by market value, are starting to invest overseas.

Analysts expect Baidu to win as much as half of Google China’s search revenue, which could add as much as $330 million annually to Baidu’s top line, representing a more than 50 percent increase on 2009 revenue of 4.45 billion yuan ($654.8 million). [ID:nTOE60C026]

The migration to a new search keyword system has also fuelled revenue growth, leading to the need for more software engineers, said a Baidu spokesman.

In an archetypal rags-to-riches tech story, Baidu was founded by Robin Li, who started the firm in a 3-star hotel room in Beijing. The search giant, whose name is taken from an ancient poem, now dominates the world’s biggest Internet market, with more than 60 percent market share by revenue and about 75 percent by traffic.

Baidu shares are up 80 percent since the start of the year compared with the Nasdaq’s 2 percent fall. It now trades at a rich forward 2010 price earnings ratio of 61 times, more than triple that of Google. (Reporting by Melanie Lee; Editing by Jonathan Hopfner)

Baidu to hire U.S. engineers to work in China

June 29 (Reuters) – Baidu Inc (BIDU.O), China’s leading search engine, will start hiring software engineers directly from the United States early next month, as it seeks to expand its technological capabilities and raise its global profile.

Stocks | Technology

Baidu, whose name is taken from an ancient poem, stands to be the biggest beneficiary in China’s search sector after Google Inc (GOOG.O) relocated its China servers to Hong Kong following a high-profile spat with Beijing over censorship and hacking.

Baidu would hire 30 mid- to senior-level software engineers from Silicon Valley at a job fair on July 10, to drive new technology projects, the first direct hiring from the United States, a Baidu spokesman told Reuters on Tuesday.

In the first quarter, Baidu had 64 percent share of the search market in China, the world’s largest Internet market by users, according to Beijing-based research firm Analysys International. (Reporting by Melanie Lee; Editing by Chris Lewis)

Baidu to hire U.S. engineers to work in China

June 29 (Reuters) – Baidu Inc (BIDU.O), China’s leading search engine, will start hiring software engineers directly from the United States early next month, as it seeks to expand its technological capabilities and raise its global profile.

Stocks | Technology

Baidu, whose name is taken from an ancient poem, stands to be the biggest beneficiary in China’s search sector after Google Inc (GOOG.O) relocated its China servers to Hong Kong following a high-profile spat with Beijing over censorship and hacking.

Baidu would hire 30 mid- to senior-level software engineers from Silicon Valley at a job fair on July 10, to drive new technology projects, the first direct hiring from the United States, a Baidu spokesman told Reuters on Tuesday.

In the first quarter, Baidu had 64 percent share of the search market in China, the world’s largest Internet market by users, according to Beijing-based research firm Analysys International. (Reporting by Melanie Lee; Editing by Chris Lewis)

Google CEO: Tech silence in China spat no shock

WASHINGTON, April 11 (Reuters) – Google Inc (GOOG.O) has not been surprised at the lack of public support in Silicon Valley as it faces off with China over hacking and censorship, the company’s chief executive Eric Schmidt said on Sunday.

“It has gone as we expected,” said Schmidt at a meeting of the American Society of News Editors.

“Google is an unusual company,” said Schmidt, adding that other tech firms in Silicon Valley probably had a range of opinions about Google’s decision to publicly report hacking attacks, and opting to end its censorship of its Chinese service.

“We were able to make a decision based on principle,” he said, adding that he was unsure what the end result would be.

“It is a battle,” he said. “We know that there is a reasonably large group of people in China who are seeking non-censored information.”

Google said on March 22 it would pull its Chinese-language search services out of China, also citing a hacking attack late in 2009 that it said originated from China.

Google ended its censorship of Chinese search results last month. Search inquiries from mainland China have since been sent to servers in Hong Kong, and have been at least intermittently censored by Beijing, Google has said.

Google — the world’s No. 1 Internet search provider and No. 2 in China behind local search powerhouse Baidu Inc (BIDU.O) — has said it intends to retain some business operations in China, including research and development staff and a sales team. (Editing by Lincoln Feast)