The Chinese government launches its own search engine

On Thursday, the Xinhua news Agency and China Mobile announced a deal to create a new search engine. Both the first and second companies of the state.

China Mobile is the largest and most expensive mobile operator in the world, still, with its 508 million subscribers. Of course, she is highly regarded and on the new York and Hong Kong stock exchanges.

Xinhua (in Russian, "Xinhua) news Agency reflecting the official policy of the Party; reports directly to the propaganda Department of the Communist party.

The government under Hu Jintao has already criticized the national television channel broadcasting, in their opinion, narrow-minded programs that encourage cravings for material wealth and frivolous behavior. However, these programs are very popular among the population, as evidenced by their high rating (advertising in China was not forbidden).

Many Chinese use domestic search engine Baidu and to a lesser extent, Google. The last are those who are bolder and want to watch the actual results. In particular, looking for the video that lives in China on two video hosting services Youku and Tudou. They are private and the foreign investors they have, so it is expected that in 2011, the year of the hosting services will move outside of China. And now, in order to reduce the force of the wind of change in the minds of the Chinese State administration of radio, film and television (SARFT) demanded that video-hosting sites went through the licensing procedure along with the TV channels.

Of course, from the creation of the new system will suffer to a greater extent private Baidu. Google to a lesser extent, because market share it is less.

It's not just the Chinese government's decision is a step in the campaign of the state on rstudy the private sector.
And although money from the mobile giant and news agencies abound to invite experts, for example, but much in China depends on the policy. The questions that will appear on the horizon:

— If the new system sensorites if Yes – how much? What to do with ideologically incorrect, but popular with young people content, if it increases advertising revenues?

— How costs and revenues will be divided between the two companies, especially since China Mobile weighs more than a partner?

Once the new company is public, will it receive the benefits of electricity?

— Whether the search to be a popular idea or not worth it?

— Will the oversight Committee for the national property (SASAC) to require state companies to buy advertising from public search engine, and not from two private?

— Who will be in charge – literate business people or loyal functionaries?

— Let foreign investors?

The party wants to whitewash itself after numerous corruption scandals, optimising the work of state companies. However, many Chinese and foreign investors fear that to compete with state corporations will fail due to a powerful administrative resource, which is available to the latest.

via businessinsider.com

Article based on information from habrahabr.ru