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Google Quickly Reverses Course On Flying Solo In China

from the not-going-it-alone dept

Although the large Chinese market seems to hold a lot of promise for American internet companies, there's no doubt that most of the big ones seem to be struggling there. eBay recently waved the white flag, admitting that its China business was basically going nowhere. Google, too, has failed to see the same success in China as it's had elsewhere around the globe. The company was an early investor in market leader Baidu.com, but pulled out to focus on Google China, which remains a laggard. Still, just last week, the head of its China operations, Kai-Fu Lee, insisted that the company would not partner with any domestic companies, as Yahoo did with local firm Alibaba, last year. Well, Google's solo ambitions didn't even last until the end of the year, as the company has invested in video download firm Xunlei. Considering how much money Google's already invested in the video space, it's a testament to the difficulty of the Chinese market, that Google still felt the need to invest in a regional player. And if the company is willing to abandon its go-it-alone strategy in video, it seems likely that they'll do the same in other areas, if they don't start to gain any traction.

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  1. identicon
    jewellery, 12 Oct 2007 @ 11:59am

    Google in China

    China always seems to provide a very difficult market, especially when you’re talking about the internet because of the way things are censored and controlled there. I do wonder about eBay and why they failed – one would think that an auction site would do well no matter where it is, but perhaps there’s something about the Chinese mindset and the way they’re used to shopping that caused its demise? Anyway, I think it’s very interesting that Google is changing their strategy and approaching China from a different angle. Perhaps that’s why they’re one of the most successful search engines out there. They aren’t afraid to change strategies and try something new when they’re failing. I wonder which market we will see Google invest in next. They’ve already conquered most of Europe, and the US is on board….I just wonder why Google didn’t set out to partner with existing companies in the first place. It seems to be more beneficial in the long run.

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