By Luanne Teoh on 07-29-2011

In 2006 Google entered China and left by 2010. Due to China’s tough laws on censorship, Google was not able to show uncensored content for its search results for its Chinese domain, Google.cn. Google also identified China as the source of attacks on prominent U.S. Web properties and e-mail accounts belonging to human rights activists. After months of failed negotiations with the Chinese authorities, Google ceased its Chinese operations and flee to Hong Kong.

In an interesting twist of fate, Microsoft’s Bing is hitting Google at its weakest link: China.

In a recent tie-up, Bing and Baidu (China’s largest search engine) has joined forces to show english results powered by Bing. English search queries will be directed from Baidu to Microsoft’s Bing search engine. Surprisingly, Baidu had originally chosen Google for this venture but the collaboration ended due to Google’s objection to follow Baidu’s censorship guidelines. Google then took to competing with Baidu, before giving up after 2 years. Bing on the other hand have no issues providing censored English results. Instead its eye is on the prize — the 477 million (and rapidly growing) Chinese internet user base.

This move is aimed at increasing Microsoft’s presence in the biggest internet market in the world. According to Dong Xu, an analyst with Analysys International, ”The co-operation between Baidu and Microsoft will further strengthen Baidu’s dominance in China’s search engine market, and will also make Google’s business in China more difficult.”

Although Google still holds 19% of the online market share in China, Microsoft’s meagre 2% hold is expected to rise to as much as 97% since Baidu alone controls more than 80% of the Chinese market.

On Monday July 25th, Baidu reported a 95 percent increase in net income, beating Wall Street expectations and sending the company’s shares up nearly seven percent in after-hours trading. Baidu said strong traffic growth and increased ad spending powered the blockbuster results. Baidu reported second-quarter revenue of $528.4 million, a 78.4 percent increase from one year ago, and net income of $252.6 million, a 95 percent increase over last year.

Here is a comparison chart of the 2 search giants respectively

Looks like Microsoft is making the right moves through co-operation and partnerships for getting into China while Google’s strongarm and solo method failed. If all English search results will be shown through Bing then there are some crucial developments areas for businesses who want to expand internationally to pay attention to.

1) Baidu and Bing SEO strategy

2) Baidu and Bing PPC strategy

3) Baidu and Bing Mobile SEO and PPC strategies

About Luanne Teoh

Luanne is a senior correspondent for BizTechDay focused on Small Business Tech, Mobile and China based in San Francisco. Apart from a keen interest in technology, Luanne is also and avid explorer of the globe, cultures and people.

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