Google losing ground in China

Google is losing market share in China to primary rival, Baidu.com, according to a survey by a Chinese internet research group.

The survey, conducted by the Beijing-based China Internet Network Information Center, reported that Baidu.com Inc. boosted its market share in Beijing by 10.8 percentage points to 52 percent. Google Inc.'s share was at 33 percent, as the American Internet search engine kept its customer base steady while the overall market grew, said the survey, seen Tuesday on CNNIC's Web site.

China's Internet population hit 103 million by June, second only to the United States, according to CNNIC. Google owns 2.6 percent of Baidu, which recently went public.


Meanwhile, U.S. Internet giant Yahoo! held only a 3.7 percent market share overall, with smaller Chinese rivals Sohu.com and Sina Corp. claiming a 4.6 percent and 4 percent share, respectively.

Google has long been popular with Chinese Web surfers, but has suffered from a lack of brand recognition.

The Mountain View, Calif.-based company only recently set up an office in Shanghai in preparation for a belated expansion in China and obtained a Web address under the country's China domain, http://www.google.com.cn

Google bought 2.6 percent of Baidu.com last year in a move outsiders thought might lead to the American giant taking over the tiny Chinese startup. But Baidu.com has stayed independent, striving to become Google's Chinese-language equivalent.

Six months ago, Google held the largest market share in the three cities covered by the survey, which was conducted earlier in August, the report said, without giving specific figures. Microsoft Corp. is getting ready to launch a Chinese version of its MSN portal through a joint venture with Shanghai Alliance Investment Ltd.