Baidu dominates the Chinese market

The New York Times recently reported that Baidu, China’s top search engine, has a market value of $3 billion and operates the fourth-most trafficked Web site in the world. While most other Internet companies have not been able to tackle Google and Yahoo in their home markets, Baidu has done just that. However, some analysts question whether Baidu will be able to continue their stronghold in the Chinese market, since Google and Yahoo have such superior technology and global work forces.

Baidu has a unique position in the Chinese market, where it could continue to prosper form competition over other internet powerhouses. As the world’s fastest-growing major economy, China’s online market is the second largest in size, after the United States. With a population of 1.3 billion, about 130 million Chinese are frequent internet users.

In China, where censorship over the internet creates a frequent problem for many internet companies, Baidu has been able to maintain its position in the market. In exchange for letting censors oversee its Web site, Baidu has continued to dominate the Chinese market with support from the government.

While Baidu’s revenue reached 190 percent this year ($40.9 million), it still does not come close to Google’s expected gains of $7 billion. Currently, Google is building a research team in Beijing very close to Baidu’s headquarters. If Google wants to conquer Baidu in its home market, it certainly has a long road ahead. Baidu’s stronghold over the Chinese market will not be taken down easily.