What's Good for Google Is Good for China

There’s been saturation coverage of Google’s (GOOG) electrifying decision last week to defy the Chinese government and stop censoring its Chinese web search engine. Google’s stock faltered briefly on the news while Baidu (BIDU), its main Chinese rival, shot up 14% in one day to a new high. But I haven’t seen any answers to a simple question: Which search engine is better: Baidu or Google.cn?

The answer is important to Google, to the Chinese and U.S. governments, and to investors. International competitiveness will likely turn on education, information and technology as it has in the past. The nation that can offer its population the best Internet access and search technology will enjoy a huge advantage. The company that offers that technology will reap enormous profits. If Google is that company, China can’t prohibit it from doing business in China without inflicting immeasurable harm on its own citizens. If it’s Baidu, and Baidu can maintain its advantage, then perhaps China risks little in shutting down its main rival and investors should rush to buy Baidu stock.

So I decided to conduct my own test by trying several searches on Baidu and Google.cn. You didn’t know I was so adept in the Chinese language? It’s true I don’t speak or read Mandarin, which is China’s official tongue that's spoken as the first language by an estimated 850 million people. But fortunately I know someone who does, a Chinese citizen who also speaks English. I won’t name or otherwise identify her out of concern that even this exercise might be deemed subversive by the Chinese authorities. Here are the searches and results:

“Tibet.” On Baidu, the first listing was Baidu Baike, a Chinese equivalent of Wikipedia. It contained a highly sanitized article with nothing likely to offend the authorities in Beijing. A travel web site appeared too, but when my friend clicked on the site, a message appeared: “It is not the time for visiting.” Whether that referred to the winter weather or politics is anybody’s guess. On Google, Baidu Baike was also the first entry. There were also several recent news entries about Tibet, including items on investment in Tibet by a Chinese company and how China’s policies were aiding poor Tibetan students. With the addition of two Chinese characters to indicate “travel,” more travel sites appeared on both search engines that included selected itineraries as well as prices for various packages.

“Earthquake in Haiti.” The first result on Baidu was from the Shanghai Stock Information Service Corp., the equivalent of a wire service. The item extolled the humanitarian aid China was offering and cited the compassionate nature of the Chinese people. On Google.cn, the first item was from ChinaNews.com. It was a story about Chinese people who died in Haiti. The second listing was from News.cn and discussed British aid efforts.

“Chanel No. 5.” Baidu’s first entry was from Baidu Baike, an article about the iconic French perfume. The second was a fashion web site, which included comments and discussion groups as well as a purchase link. Google’s results produced a photo of the perfume as well as numerous online shopping sites offering Chanel No. 5 but no discussion groups.

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What's Good for Google Is Good for China: Baidu's first entry was from Baidu Baike, an article about the iconic Fr... http://bit.ly/8EpJvm

What's Good for Google Is Good for China: Baidu's first entry was from Baidu Baike, an article about the iconic Fr... http://bit.ly/8EpJvm

What's Good for Google Is Good for China: Baidu's first entry was from Baidu Baike, an article about the iconic Fr... http://bit.ly/8EpJvm

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