Google (GOOG) appears increasingly likely to close its Chinese-language search engine within weeks, leaving the Internet largely in the hands of local search engine
Baidu (BIDU), the
Wall Street Journal reported.
Google and Chinese authorities have been in talks about the extent to which the U.S. Internet giant will be able to operate a business in China if it follows through on its pledge tow months ago to stop following government censorship requirements on its Chinese site, Google.cn, the Journal reported.
Google, one of the few foreign participants with a solid market share, has about 36% of China’s search revenue, compared to 58% for Chinese rival Baidu (BIDU). Google’s closure of Google.cn would leave the Internet in China almost entirely dominated by local companies, according to the Journal.
China currently has about 400 milion Internet users, more than any other country, and is adding 250,000 users each day, the Journal reported.
BIDU is a
Cabot Market Letter and
Cabot China & Emerging Markets Report stock.