Good Luck, My Overseas Warriors!

Baidu, Chinese version Google, succeeded to grab online searching and ad business from Google, Yahoo! and MSN in China. Recently, Baidu ambitiously plans to "invade" Japanese online business, which is currently dominated by Google and Yahoo!. It seems Baidu is learning his first foreign language--after being world NO. 1 Chinese search engine, he is ready to provide Japanese searching services. Will Baidu be a lucky dog again?

Chairman of Baidu, Robin Li, is very confident about their future in Japan. "We know very well about our competitors. We are confident to win in the next battle." But the next round fright is not a local game, it is a international competition: What is Japanese preference? What is the business rules in Japan? Does search engine just mean "searching in Japanese"? How does tensive Sino-Japan relationship affect Chinese companies? (Think about how communism treated SKII in Shanghai.) So many crucial questions in front of Robin Li.

Although the answer about Baidu's future cannot be found at Baidu.com, lots of news that China's local companies succeeded to dampen foreign market players can be easily reached in 0.0001 second via Baidu. Tuesday, I sold short 1,000 shares of EBAY, because in Monday's midnight, I got the news that eBay in China split on joint venture with TOM Online, a Hongkong based internet company. TOM Online controls 51% shares, and eBay takes the rest. Why does the online trade giant fail in China? eBay claims that it is largely because of China's poor credit system, which does not work well with its advanced Paypal system. Probably it is true, standing on the side of eBay. But ironically, China's online trade business does not show any trace of falling down--inefficient payment methods do not lower people's consumption confidence. Actually, eBay gave in, and lost the game with local companies, such as dangdang.com, and alibaba.com. In the early year when eBay arrived in China, eBay wanted to merge with dangdang.com. But Mrs. President of dangdang.com said, "No. We can take the whole stake of China's online business!" It sounded ridiculous to challenge eBay at that time. But dangdang.com just make it.

In general, China's companies still have a long, and tough way to go, especially when they are involving more and more with global market. Baidu, as one of the ancestors of China's overseas worrior, I just want to sincerely say, Good Luck!