Thursday, April 28, 2005

Approval of Google's Plans to Expand Mainland China Operations

From Approval of Google's plans to expand Mainland China operations will intensify local competition

"Chinese authorities have green-lighted Google's plans to open the company's first office in Mainland China, which will allow the world's largest search engine to further localize its operations, but will also significantly intensify competition in China's online search market, analysts said."

"Although Google has operated a Chinese language search engine since September of 2000, the company had previously been forced to run its China business out of an office in Hong Kong, which hindered its ability to market advertising services via its search engine to Mainland Chinese companies. Google's businesses in China have mainly been limited to self-help advertising services such as Google AdWords and Google AdSense.
Although Google has yet to disclose where the company will set up its new Mainland China office, local newspaper 21st Century Business Herald reported the search engine would set up shop in Shanghai. In addition, the paper reported that Google had hired Victor Koo, the former COO of NASDAQ-listed Sohu, to head up the company's Mainland operations."

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