Robin Li Said China is Going to Surpass US on the Internet

January 11th, 2008 by Andrew Chen

Who is Robin Li? He is the chairman, founder and CEO of the leading Chinese search engine Baidu.com (NASDAQ: BIDU).

He had an interview with one of the major Chinese internet media. The following is some notes of what he said.

Let’s look at the history of information technology in the pass few decades.

There is obvious turning point: 20 century is the century of information technology. 21 century is the century of search engine. Information technology improved the inner efficiency of enterprise, and search engine technology improved its outer efficiency. More accurately, it changed the relationship between businesses and the human society

Baidu in 7 years has grown from tens of employees to today’s 6000 people. It has grown 10,000 times comparing its market capital today to its initial investments.

The biggest challenge search engine technology is facing in China today is that most businesses don’t have a mature understanding of the value of internet and search engine. Most businesses, big or small, still didn’t realize the kind of revolutions and opportunities that search engines are able to bring about.

China has 30 million businesses but only 148 thousands of them are Baidu clients

Baidu is account for 75% of the internet search market in China

Baidu is going to focus more on how to increase the size of the internet search market and how to let it grow faster

China has already surpassed Germany in GDP and become the third biggest economy but the search engine market is only $200 million, which is far less then the $2 billion British internet search market.

Even though our market is small in terms of business we are very big technologically. Last quarter monthly internet search in China was 10 billion times. For the fast time it surpassed the United States’ 9 billion times.

China’s economy is developing at a fast pace and internet is getting more and more popular, when the number of internet users in China surpass any other country, we will encounter various internet problem before other country will, and we will have the chance to be the first one to solve these problems. This is an advantage of China

When I read this news I feel a huge potential laying ahead for Baidu and other Chinese search companies. Baidu is account for 75% of internet search market in China and it only has 148 thousands clients. There are 30 millions more potential client out there. Of couse not every single one is going to use internet as advertising media. I know that there are about 20 millions businesses in the US. If I know the percentage of US business using internet as advertising media then the picture for Baidu will be more clear.

Any how after reading this I feel I should buy in to Baidu stock as early as I can. Otherwise I will probably regret when It surpass Google (possible right?) ten years later. Of course I still didn’t do that. Lack of Cash