News is in that Chinese netsurfers (opens in new tab) prefer domestic search engines to foreign ones. Chinese culture seems to prefer home grown brands to foreign ones as far as telecommunications and IT is concerned.
China Mobile has more than 250 millions users, much more than its other competitors combined. Lenovo and Legend, the two main PC manufacturers have dominated the local market and have now set their sights on foreign markets; Lenovo most notably purchased the IBM Personal Computer division not so long ago, in a bid to capture European and US markets.
Chinese manufactures are busy building a x86 compatible processor, the Dragon, which sooner or later will end the hegemony of AMD and Intel, the two US companies which control more than 95% of the worldwide CPU market. If that's not enough, the Chinese government is encouraging home grown distributions of Linux to counteract the penetration of Microsoft Windows.
As for the 110 million Chinese Internet users, more than 56% of them prefer Baidu, the in-house search engine. Google is a distant second with less than a third of the market and the rest - MSN, Yahoo and others - collecting only a tiny fraction of the pie.
Baidu is still expanding, at the expense of its competitors and on top of the booming Chinese Internet user growth. The Chinese search engine is on the rise; it is the fourth most visited site on the internet and is quoted on NASDAQ. Interestingly, Google is one of Baidu's shareholders.