After the quadrupling of Baidu.coms stocks, Google comes to prove that its intentions for the Chinese market are equally serious.
Google has announced that, together with a local company, it will sell ads in China through its AdWords service. China Enterprise, a subsidiary of Sino-i Technology, was authorized by Google to sell AdWords services in China.
AdWords is a service which is used by those who want advertisements on the Internet to pay so that their ads show up on the result page and it represents Googles primary income
Google obtains from this service billions of dollars and although Yahoo and MSN also offer such services, Google is still the leader in this field.
Google, which has recently announced the opening of an office in China, has to deal now with heavy competition coming from Yahoo, represented by 3721.com, MSN, as well as the local companies Baidu.com and Sina.com, which has recently launched a search engine.
Google owns 2.6% of Baidu.com and it remains to be seen what strategy the American company will adopt for China.
Googles debut in China was shadowed by the dispute with Microsoft over the hiring of Kai-Fu Lee, a former Microsoft executive in China. Currently, Microsoft has a court order which prevents Kai-Fu Lee from working for Google until September this year, and Microsoft hopes that the period will be extended until January 2006, when the lawsuit is scheduled to take place. SOURCE