Western countries have no choice but follow what the Chinese government says
Western
companies have been plagued by problems ranging from piracy to
troublesome Chinese laws, but a Chinese tech market leader said it's
up to U.S. companies to adhere to Chinese customs.
The CEO of
Baidu, China's top search engine, believes it's up to western
companies to move into the market by following Chinese laws.
Google's Q1 search market control in China dropped from 35.6 percent
down to 30.9 percent, while Baidu's share increased from 58.4 percent
up to 64 percent.
"The Chinese government still would
like to see U.S. internet companies
explore the Chinese market, providing they are willing to abide
by Chinese law," said Robin Li, Baidu search engine co-founder,
during a recent interview. "I think companies like
Facebook should think about the Chinese market. If they do it
right, if they have a lot of patience, they have a chance. But
time is flying. The Internet market is growing and there is a
lot of competition. If you don' go (soon) you'll lose that
window of opportunity."
Google, Microsoft, and Yahoo have
all had issues related to their search businesses inside China --
with the Chinese government requiring all foreign companies to adhere
to a unique set of laws. Facebook CEO Mark Zuckerberg plans to
bring the No. 1 social networking site to China, even though it
currently is a prohibited site in the country.
Throwing
in the towel and following Chinese government demands has led to
increased pressure with U.S. lawmakers who remain concerned over
human rights violations.
Meanwhile, Baidu may try to expand
from China in Japan and focus on additional markets. Company
executives plan to generate revenue in China and use that money to
fund expansion efforts in other parts of Asia and several western
markets.
China has more than 1 billion people -- and at least
400 million internet users -- with a growing acceptance of
technology, which makes it an important target for western
companies. It's possible two or three companies will work
together to create a shared venture that helps give them a shot at
the market without as much invested risk.
“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith
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