China continues to be Google’s Achilles’ heel. China is the largest internet market in the world. Google has suffered from hacking and traffic blocks there, and it is a distant second to local search company Baidu Inc. (NASDAQ: BIDU) in terms of market share. The Chinese government seems set on keeping Google well behind its local favorite. With the roadblock in China, there are few places Google can turn outside the largest developed nations and parts of South America. Russia has a dominant search engine — Yandex. And India has its own — Rediff.
Google’s problems in China may be its most immediate ones among developed nations, but its problems in these regions are much greater than that.
Douglas A. McIntyre