Google gains ground on Baidu in China-Study
(Reuters)
Updated: 2006-01-19 09:55

U.S. Internet search giant Google is gaining on local rival Baidu in the race to dominate the fast-growing Chinese search engine market, according to a research firm's survey.

The study, conducted by Internet performance research firm Keynote Systems, bodes well for Google, which has made major moves to set up in China, the world's second-biggest online market with 120 million users.

Google's Chinese site came out on top in 11 out of 13 categories, including general, news and image searches, and more consumers saw Google's search results as relevant, according to the survey, released on Wednesday.

The monthlong survey of 1,200 Chinese Web users rated usage on Google, Baidu, Sohu.com Inc.'s Sogou, and e-marketplace specialist Alibaba, which is 40 percent owned by Yahoo.

Baidu declined to comment on the report. Google, which owns 2.6 percent of Baidu, could not be reached for comment.

Baidu and Google were about even in customer preference, despite Baidu's brand recognition and market advantages in Asia, where it commands more than one-third of all traffic among China's over 100 million Web surfers, Keynote said.

Baidu is facing growing competition from both domestic and international players, which have all made major moves in a bid to reap profits and growth similar to Google.

EBay has invested $180 million in Shanghai-based EachNet. InterActiveCorp paid $168 million for 52 percent of Chinese online travel agent eLong.

Online retailer Amazon.com purchased Joyo.com for $75 million, and job search provider Monster.com paid $50 million for a 40 percent stake in ChinaHR.com.

Google was down 3.3 percent at $451.58 per share and Baidu was down 2.8 percent at $62.93 in mid-day trading on the New York Stock Exchange, following on Tuesday night's weak results reported by Yahoo, which dragged down other technology companies as well.