Chinese Firms Draw Bead on Google

August 12, 2010

Two state-run companies announced plans Thursday to enter the Internet search business, creating another potential rival to the American-based web search giant.

The new venture by Xinhua news agency and leading telephone carrier China Mobile is expected to focus on mobile searches -- an area in which Google is currently ranked third in China. Chinese firms Baidu and Easou both have more customers in the fast-growing market.

The announcement comes five weeks after Chinese authorities renewed Google's license to operate in the country. The decision had been in doubt after Google moved its standard Internet search functions to Hong Kong to avoid having to cooperate with Chinese censors.