Chinese firm lagging in technology, management
There is still a big gap between China's largest search engine Baidu and U.S.-based Google in terms of technology and management, as illustrated in a recent incident in which Baidu was probed for its paid listings after the death of a student, analysts noted on Sunday.
"There is no doubt that Baidu has a long way to go to catch up with Google, particularly in the search engine area, which is the core business for both companies," Fu Liang, a Beijing-based independent technology expert, told the Global Times on Sunday.
Generating a comprehensive and accurate list of search results that meet users' needs requires advanced technologies in collecting, analyzing and categorizing big data, said Fu, noting Baidu is far behind in this regard compared to Google.
Although both companies are secretive about their algorithm technology, which is used in the process of ranking search results for users, the general consensus is that Google is the leading force in this area, Fu noted, adding that Baidu had started much later than its U.S. rival.
Google has been creating and improving its algorithms to provide the most accurate and relevant results to users, and there are hundreds of updates throughout the year, according to media reports.
Management issues
But aside from the algorithms, another factor affecting search results is the management structures in the two companies, according to Liu Dingding, a senior analyst at Beijing-based Internet consultancy Sootoo.
"[Management decisions] might affect the search results even more than the technologies behind them," Liu told the Global Times Sunday.
Liu pointed out that paid listings, particularly for healthcare products, generate most of Baidu's revenue, and that Baidu's management has been focused too much on paid listings.
That has been reflected in a series of incidents involving Baidu's practice of ranking search results in recent years, including the most recent case in which the Internet company was investigated by Chinese officials following the death on April 12 of Wei Zexi, a 21-year-old student from Northwest China's Shaanxi Province.
Wei had been suffering from a rare form of cancer and had sought medical treatment at a hospital in Beijing that was one of the top Baidu search results he found.
He chronicled his substandard treatment online, which prompted a public outcry and an official investigation after his death.
After completing the investigation, the Cyberspace Administration of China said on May 9 that Baidu relied excessively on profits from paid listings in search results, and did not clearly label such listings as the result of commercial promotion, compromising the objectivity and impartiality of the search results.
Liu pointed out that while Google also has paid listings, it separates the commercial results from the "natural results" with different labels and provides a "more comprehensive list."
However, Google is also facing challenges over its search result rankings. On May 17, a U.S. federal judge allowed a lawsuit - in which Google has been accused of improperly censoring search results - to proceed, according to the Wall Street Journal.
Baidu's recent issues might offer opportunities for other domestic search engines, such as Sogou, which is owned by Chinese Internet giant sohu.com, and 360 Search, analysts said.
Rival domestic firms have already been taking advantage of the recent damage to Baidu's reputation. 360 Search announced in May, after the official investigation into Baidu, that it would no longer promote healthcare products.
Also, to compete with Baidu in English-language search services - an area considered by analysts as a weakness for Baidu - Sogou announced on May 19 that it would team up with Microsoft's Bing to launch an English-language search service to further its presence in the country's online search market.
However, they won't be able to challenge Baidu's dominant position in the Chinese market in the short term, analysts said.
"But Baidu needs to carry out internal reforms and focus more on improving its technologies to move forward," said Liu.
