Chinese Minister Hints At Consequences For Google

Despite weeks of talks that have supposedly taken place behind closed doors, the Chinese government still seems unwilling to compromise with respect to Google and censorship.  Indeed, it may be growing hostile, as a minister talked about "consequences" today.

The BBC reported that Minister of Industry and Information Technology Li Yizhong adopted a tough stance during a legislation session.  "I hope that Google will abide and respect the Chinese government's laws and regulations," he said.  "But, if you betray Chinese laws and regulations . . . it means that you are unfriendly, irresponsible, and you will have to pay the consequences."

As for what those consequences might be, it almost sounds as if China's ready to force Google out of the country whether it wants to leave or not.  The Chinese official stated at one point, "[W]hat needs to be shut down will be shut down, what needs to be blocked will be blocked."

This is less than good news for anyone who was hoping Google would be able to keep operating in China.  Considering that Eric Schmidt recently said "something will happen soon," it may even represent the end of the road, rather than just another outburst of rhetoric.

Or not.  Investors on both sides have failed to flinch, with Google's and Baidu's stocks up about equal amounts so far today.

Schmidt On China: “Something Will Happen Soon”

Two Google executives have again assured onlookers that the company is dealing with the situation in China.  While in Abu Dhabi, Eric Schmidt indicated today that something will happen sooner rather than later, and Nicole Wong told politicians in D.C. that leaving China is still an option.

Unfortunately, not a lot of other details and/or promises were forthcoming.  Eric Schmidt's exact words, according to Jerry Dicolo, were "something will happen soon," and whether that's "soon" as a five-year-old would perceive it or in terms of continental drift is hard to say.

We should note: it's already been almost two months since Google stated in an official blog post, "[O]ver the next few weeks we will be discussing with the Chinese government the basis on which we could operate an unfiltered search engine within the law, if at all."

As for what Nicole Wong, Vice President and Deputy General Counsel at the company, had to say, there was less wiggle room.  The AFP reports that she maintained, "We are not going to change our decision on not censoring results anymore."  Also, with respect to abandoning the country, Wong added, "We are prepared to do that."

Google and Baidu investors are sure to remain on pins and needles until the situation is resolved.

Baidu Receives $50 Million To Build Video Site

The creation of the Chinese equivalent of Hulu is now officially underway.  Providence Equity Partners, which invested $100 million in the original American video site, will give Baidu $50 million to create Qiyi.com.  Qiyi should similarly offer premium content and rely on ad revenue.

Qiyi will indeed be a completely by-the-book operation, judging from an "About Us" section that's in English.  It explained, "Qiyi will strictly abide by copyright laws and administrative regulations, to take copyright protection measures to protect the legitimate rights and interests of copyright holders."

Then another paragraph later added, "Qiyi keeps making efforts . . . to spread the advanced socialism culture by undertaking its social responsibility as an outstanding corporate citizen.  Qiyi is playing a positive role in developing a harmonious society."

Unfortunately, not a lot else is known about the project.  The site's official launch date hasn't been publicized, and other details (relating to advertisers' identities, hours of content available, and so forth) are also unavailable.

One important thing that's been made clear, at least, is the fact that Baidu will retain majority ownership in Qiyi despite Providence's large investment.

Google Trounces Yahoo, Bing In Mobile Search Report

Although Google's undoubtedly best known for dominating the traditional search market, the company's no slouch when it comes to mobile.  New stats from Opera indicate that Google has a huge lead over its closest rival, and that its other well-funded competitor barely enters the equation.

According to the latest Opera State of the Mobile Report, Google's search portal accounts "for more than 9% of all page views on the mobile Web."  Obviously, that's impressive.

Moving on, things take a turn for the ho-hum.  Yahoo can only claim 4.3 percent of page views, which isn't bad, just kind of embarrassing next to Google's twice-as-large share.

Finally, we arrive at something shameful.  To quantify Bing's share, Opera had to consider an extra place to the right of the decimal point.  The final number: 0.03 percent, which is one three-hundredth of Google's share.

Google hasn't quite taken over the world, however.  Jon von Tetzchner, Opera's cofounder, said in a statement, "While Google performs well globally, we also see several local search engines, such as Yandex in Russia and Ukraine, and Baidu in China, have impressive results in their key markets."

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