China Tech Roundup

China Internet and Technology Roundup provided by Chinamemes.com:

Xunlei Network Technology Confirms Google Investment
Shenzhen Xunlei Network Technology, the Chinese P2P video software company has confirmed that Google will become an investor in the company, according to a Bloomberg news report.

Haier to Acquire Founder as China`s Second Largest PC Maker
The Haier Group, mainland China`s largest home appliance manufacturer, has confirmed its acquisition of the Founder Group, China`s second largest maker of personal computers.

The Chinese Discover Central Europe
In a strange paradox of globalization, mainland manufacturers are spending millions to establish factories in EU member countries.

Sohu Loses Illegal Movie Download Suit
A local Chinese judge has sentenced web portal Sohu.com (SOHU) to pay over RMB1.08 million (about $ 140.000) as compensation to five international entertainment companies because the portal provided illegal downloading of the companies' films to Internet users.

China has 830 million phone users, 132 million online
The number of Chinese fixed and mobile telephone subscribers has hit 830 million, while 132 million use the Internet, the state-run Xinhua news agency has reported, citing government statistics.

Earthquake disrupts Internet access in Asia
In what local analysts are blaming on the 6.7 earthquake off the coast of Taiwan yesterday, communications and Internet access throughout Asia have been disrupted.

Google, China Mobile to launch mobile search service
Google Inc and China Mobile will launch a mobile search service in 2007.

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China Tech Roundup

China Internet and Technology Roundup provided by Chinamemes.com:

For eBay, It’s About Political Connections in China
While eBay’s new partner, TOM Online Inc., has suffered a series of commercial setbacks in the last three years, no one questions that it knows the Chinese market and has political influence.

Chinese "Smart Mob" saves a life via the Internet
More than 1000 Chinese people collaborate on the Internet to save the life of a student who had almost commit suicide.

Google not interested in a Chinese partner
Google Inc., the most-used Internet search engine, said it won't take on a Chinese partner as the U.S. company fails to gain market share from Baidu.

Shanghai IPTV Users Break 60000 In Three Months
Shanghai now has more than 60000 IPTV users since the IPTV number issuance in September 2006 and the user number in the city is expected to at least double in 2007.

China Mobile adds 4.67 million new users in one month
China Mobile received 4.67 million new users in November which made its total user reach 296.4 million by the end of the month.

Mainland China to Have over 32 Million Mobile Video Users in 2008
The mobile video market in China will take off in 2008, driven by interest in the Beijing Olympics. A new study from ABI Research forecasts total mobile video users at more than 32 million in 2008.

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China's Virtual Currency Threatens the Yuan

From Asia Times Online:

"The so-called "QQ" coin - issued by Tencent, China's largest instant-messaging service provider - has become so popular that the country's central bank is worried that it could affect the value of the yuan. Li Chao, spokesman and director of the General Office of the People's Bank of China (PBOC), has expressed his concern in the Chinese media and announced that the central bank will draft regulations next year governing virtual transactions."

"Tencent argues that Yang and the PBOC are overreacting, and some Internet analysts agree. Nevertheless, there is no question that the virtual-currency trend is catching on in China, and the endgame is unclear.

Tencent boasts more than 220 million users, and its QQ coins can be purchased with a bank, telephone or "QQ" card at an official price of 1 yuan (12.5 cents) per coin. Originally, the virtual coins were designed to pay for Tencent services such as electronic greeting cards, online games and anti-virus software. Now, however, they have reportedly developed into an alternative currency traded on the black market and used for other, less savory services, such as online gambling and private chats with "QQ girls"."

Telefonica Plans to Raise China Netcom Stake to 9.9%

From MarketWatch:

"Spain's Telefonica SA (TEF) has confirmed plans to raise its stake in Chinese telecommunications operator China Netcom Group Corp. (Hong Kong) Ltd. (CN) to 9.9%, a company spokeswoman said Thursday."

"Telefonica, the largest telecommunications company in Spain and Latin America, will also receive the right to appoint a second member to China Netcom's board of directors, the spokeswoman added."

Baidu.com May Link up with Microsoft, China Telecom, China Netcom

From Forbes:

"Chinese-language search engine Baidu.com Inc is expected to sign an agreement with Microsoft, China Telecom and China Netcom to provide them with search services, the official Shanghai Securities News reported citing unnamed sources.

The report cited one analyst as saying that the agreement will likely translate to 10-20 mln usd in additional advertising revenue for Baidu."

China Has Nearly 20 Million Bloggers

Form The Age:

"China had 19.87 million bloggers at the beginning of November - a 24 percent increase over the past 12 months.

While more than 15 per cent update their blogs at least once a week, only 4.6 per cent do it daily, Baidu found. Blogs devoted to medicine and education are particularly popular, the Xinhua news agency said Wednesday, quoting a study by search engine Baidu."

The Chinese Internet

From Line56:

"When it comes to the Internet economy, China is the elephant in the room.

Sometime this year, according to sohu.com's Dr. Charles Zhang, Chinese Internet users surpassed U.S. Internet users in number. We have roughly 154 million Internet users and China could have as many as 200 million."

"The Chinese government realizes the importance of developing the country's infrastructure so as to enable the growth of the Internet. China has committed $127 billion to advanced telco development over the next five years. By way of contrast, this is about how much money the U.S. spends annually to prosecute the war in Iraq (minus hidden and indirect costs)."

Baidu to Enter Japan's Web Search Market

From Reuters:

"Chinese Internet search leader Baidu.com said on Monday it would enter Japan's search market in 2007, prompting a 2 percent rise in its shares, but analysts questioned whether the expansion would succeed.

The company said its decision, which followed a six-month study into Japanese-language search technology, was based on a high level of Internet use in Japan and some similarities between the Chinese and Japanese languages.

Baidu, which claims 60 percent of China's Web search market, did not detail its plans to enter the Japanese market, where competitors will include market leader Yahoo Japan Corp., Google Inc., and Microsoft Corp.'s MSN."

Mobile Phone Sales Rise as Chinese Brands Suffer

From ShanghaiDaily:

"China's mobile phone sales grew by 3.88 percent in the third quarter but the market share of Chinese brands dropped below 30 percent for the first time, research companies said yesterday."

"The market share of local brands fell to 29.2 percent by September, from 38 percent in December last year and 55 percent in 2003, said Beijing-based CCID Consulting, a research firm under the Ministry of Information Industry.

Nokia and Motorola held more than 55.6 percent of the market. In the third quarter, Nokia's market share was 33 percent, followed by Motorola's 22 percent and Samsung's 8 percent, according to Sandy Shen, a Gartner's analyst.

Top Chinese handset makers are Ningbo Bird and Lenovo, each with 5 percent of the market, said Shen."

Huawei Forecasts $11B

From Unstrung.com:

"Huawei Technologies Co., Ltd. ("Huawei"), a leader in providing next generation telecommunications network solutions for operators around the world, today announced that it expects full-year contract sales to reach USD 11 billion by the end of 2006. As at 1H2006, Huawei recorded contract sales of USD 5.2 billion, an increase of 29 percent compared to the same period last year. The value of contract sales from international markets reached USD 3.4 billion, an increase of 36 percent over the same period in 2005. The international market represented 65 percent of total contract sales generated in 1H2006."

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Lenovo Still the Mainland's Main Choice

From BusinessWeek:

"Ever since Legend Computer took the lead in PC sales in China back in 1997, competitors and analysts have been predicting that its rule would eventually come to an end. The pressure from global players would simply be too hard to stave off.

That hasn't happened. As of the second quarter, the company, now called Lenovo, held a commanding 35% market share, more than twice that of its nearest competitor."

"The main worry for Lenovo is Dell (DELL), which has gradually been gaining share in China since it entered the market eight years ago. It now ranks third, behind domestic PC maker Founder, with a 9.8% market share."

Cisco CEO 'Would Love' to Team With Huawei

From CIO.com:

"John Chambers, Cisco Systems’ president and chief executive officer, would partner with Chinese rival Huawei Technologies if the opportunity ever arose.

"I would love to partner with Huawei," Chambers told reporters during a news conference at the Telecom World 2006 conference and exhibition organized by the International Telecommunication Union (ITU) in Hong Kong.

"That may or may not happen in the future," he said.

Huawei is based in Shenzhen, just across the border from Hong Kong, and has built a growing business on sales of telecommunications and networking gear. In addition to providing equipment to operators in China and in developing nations, Huawei has won significant deals from operators in Europe. In 2005, the company signed contracts worth US$8.2 billion, of which 58 percent came from outside China."

The Battle for the Hearts and Searches of China’s Web Surfers

From Chicago Tribune:

"The Mountain View, Calif.-based behemoth [Google] has set its sights on capturing the vast and lucrative China Internet market, the world’s second-largest. But Baidu beat them to it, and the canny, swift-footed competitor is proving exceptionally tough on its home field.

Baidu has virtually copied Google’s clean-screen look, but the rest of the Baidu game plan is original. It plays to nationalist advantage by attacking Google as a foreign invader. It promotes itself in such splashy ways as a huge neon sign on the banks of the Pearl River in Shanghai. And it has flourished by aggressively marketing itself in ways verboten at Google: Baidu lets advertisers pay for placement in its search results.

The formula is working. Despite a big marketing push from Google over the last year, Baidu is the first choice of 62 percent of Chinese users, up 15 points over 2005, according to a study released in September by the China Internet Network Information Center. Google’s share dropped eight points, to 25 percent - a rare setback."