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BY GEORGE DUMONTIER

Microsoft has teamed up with Baidu, China’s leading search engine. Baidu plans to use Microsoft to handle it’s 10 million English searches every day, while Microsoft hopes to gain access to the 475 million Internet users in China, the largest Internet population in the world.

The Street reports, the partnership...

“...would allow its users to see English-language search results generated by Bing, the U.S. company’s search engine. No financial considerations were involved in the deal, which will see Bing's search results labeled and integrated into Baidu's search results from later this year.”

Although the terms of the partnership have not been released, analysts say -- English searches will undoubtedly be censored -- something China has become notorious for in its squabbles with Google. On that point, Microsoft says its company...

“...respects and follows laws and regulations in every country where we run business. We operate in China in a manner that both respects local authority and culture and makes clear that we have differences of opinion with official content management policies.”

Baidu is a giant of a search engine with nearly 85 percent of the Chinese market.
In second place -- Google.

The American search engine offers both English and Chinese, but just last year it moved its headquarters from mainland China to Hong Kong to avoid censorship.

Edward Yu, head of a consulting agency focused on Chinese Internet Industry, says Baidu made the right choice.
 
“Given the length of its operations in China, Microsoft is very familiar with how to keep a good relationship with the Chinese government... They’re much more experienced than Google, and they're much more skillful than Google in this regard.”

But The New york Times reports -- Google has not given up on the Chinese Internet market. They’re just using a different tactic.

“...Google says that search is not its biggest business opportunity in China. Instead, it is betting on selling ads to Chinese companies to show users outside China and selling display ads to run on non-Google Web sites, neither of which is dependent on search. Chinese advertisers spent $1.7 billion on display ads last year, one of the highest such spends in the world, according to Google.


 

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