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Tuesday, 06 July 2010 10:15

Baidu does not expect big gains from Google's China departure

Written by Nick Farell
china-flag

The outfits have common clients
Chinese search engine Baidu expects only marginal gains if Google is removed from China for refusing to censor its content. Baidu's chief financial officer said othe impact is minimal on Baidu's business as the companies share common clients.

Talking to Reuters CFO Jennifer Li said that the Google incident is only generating marginal impact, positive impact on our platform. It expects to have more impact from the the number of people using the Web in China rising. It also sees its new search keyword bidding system spurring growth in coming quarters.

Baidu's shares have rocketed 76 percent since Google said in January that it might leave China because of censorship concerns and a hacking episode that it said originated in the country.

Analysts think Baidu could win as much as half of Google China's search revenue if that happened.

Nick Farell

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