On Thursday, Xinhua and China Mobile news agency announced a deal to create a new search engine. Both the first and the second are state-owned companies.
China Mobile is the largest and most expensive mobile operator in the world, with its 508 million subscribers. Naturally, it is highly rated on both the New York and Hong Kong stock exchanges.
Xinhua (in Russian "Xinhua) - a news agency that reflects the official policies 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 prosperity and frivolous behavior. However, these programs are very popular with the population, as evidenced by their high rating (no one in China prohibited advertising).
Many Chinese use the domestic search engine Baidu and, to a lesser extent, Google. The latter are used by those who are bolder and want to observe the actual results of the issue. In particular, they are looking for a video that lives in China on two video hosting sites Youku and Tudou. They are private and their investors are foreign, so it is expected that in 2011, hosting will move out of China. And now, in order to reduce the strength of the wind of change in the heads of the Chinese, the State Administration of Broadcasting, Cinematography and Television (SARFT) has demanded that video hosting companies undergo a licensing procedure on a par with television channels.
Naturally, from the creation of a new system will suffer more private Baidu. Google to a lesser extent, because it takes less market share.
This is not just a decision of the Chinese government - it is a step in the campaign of the state in the growing private sector.
And although there is plenty of money from a mobile giant and an information agency to invite specialists, for example, however, much in China depends on politics. Questions that will certainly appear on the horizon:
- Will the new system be censored, if so, how much? What to do with ideologically unseasoned, but popular content among young people, if it increases advertising revenue?
- How will the costs and revenues be divided between the two companies, especially since China Mobile weighs more than its partner?
- Since the new company is a state company, will it receive benefits for electricity?
- Will the search engine be popular or the idea was not worth it?
- Will the Committee for the Supervision of National Property (SASAC) prescribe state. companies to buy advertising from the public search engine, and not from two private?
- Who will be headed - competent businessmen or loyal functionaries?
- Will foreign investors be allowed in?
The party seeks to whitewash itself after numerous corruption scandals, optimizing the work of state. companies. However, many Chinese and foreign investors fear that they will not be able to compete with state corporations because of the powerful administrative resources that the latter have.