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Microsoft and China`s Baidu to Work Together

A new "strategic alliance" has taken form in China between the software giant Microsoft and the Chinese search portal Baidu. The two companies will join forces and work together in the Chinese market, the fourth largest economy in the world. Microsoft`s rival, Google, is aggressively gaining market share in China, and Microsoft wants to stop Google`s advancement. Baidu has the same intentions, as Google is biting into its online backyard.

Microsoft will show Baidu`s ads on its popular MSN portal, Live portal and other popular sites. This move will push people`s awareness to Baidu`s products, and help it gain additional market share in China. Microsoft`s tactics of using a local company to penetrate foreign markets isn`t new, and it?s a line that the software giant uses often. Google on the other hand, is known for taking things into its own hands. Google is also looking for ways to expand their hold over the Chinese online market.

The financial details of the agreement were not made public. It`s easy to tell who is winning from the deal, as Baidu receives mass advertisement, while Microsoft, for now, is getting little out of the agreement. But, as we all know, the saying goes "the enemy of my enemy is my friend". Google`s presence in the Chinese market is probably not that liked by the Microsoft corporation. As more companies enter the Chinese market it is growing and improving. The potential is overwhelming, but there is still work to be done, especially regarding government censorship.