Only one Chinese search engine can be used for SEO in China: Baidu

In December 26th 2014 , google stop his service in China . and since Baidu is the leader in this search engine service in China

Key Highlights from Baidu’s Second Quarter of 2023:

• Baidu Core’s Performance:
  • Accelerated revenue and profit growth.
  • Strong results from online marketing business.
  • Enhanced operating efficiency.
• Strategic Focus on AI:
  • Emphasis on generative AI and large language models (LLM) for market opportunities.
  • Continuous upgrades for more creative AI responses.
  • Improved training efficiency and reduced inference costs.
  • Recognition of ERNIE 3.5, Baidu’s latest foundation model, by cloud customers, AI developers, and industry experts.
  • Adopting AI-native strategies for product innovation and enterprise support.
• Financial Growth and Efficiency:
  • Non-GAAP operating profit increased by 27% year-over-year.
  • Operating margin expanded to 25%, up from 22% the previous year and 23% the previous quarter.
  • Net cash of approximately RMB 9.7 billion generated from operating activities.
  • Growth driven by revenue acceleration and efficiency gains.
• Future Investments:
  • Baidu’s long-term commitment to AI development.
  • Focus on large language models and generative AI in upcoming quarters.

This summary encapsulates the main points from Baidu’s Q2 2023 report, focusing on financial performance, AI advancements, and future investment strategies.

Operational Highlights of Baidu 2023-2024

• Corporate:
  • Launched ERNIE 3.5 in May 2023, powering ERNIE Bot.
  • Recognized for AI model capabilities by IDC report in July 2023.
  • Included in S&P Global Sustainability Yearbook for ESG scores.
• AI Cloud:
  • PaddlePaddle community reached 8 million users in mid-August 2023.
  • Ranked No.1 AI Cloud provider in China for 4 consecutive years (IDC 2022 report).
• Intelligent Driving:
  • Apollo Go provided 714K rides in Q2 2023, up 149% year-over-year.
  • Total cumulative rides by Apollo Go reached 3.3 million by June 30, 2023.
  • Received permits for fully driverless ride-hailing in Shenzhen Pingshan.
  • Permission granted in four cities for driverless services.
• Other Growth Initiatives:
  • Xiaodu ranked No.1 in smart display and speaker shipments in China (Q1 2023).
• Mobile Ecosystem:
  • Baidu App’s MAUs reached 677 million in June 2023, up 8% year-over-year.
  • Managed Page contributed 52% to Baidu Core’s online marketing revenue in Q2 2023.
• iQIYI:
  • Average daily subscribing members at 111.2 million for the quarter.

Financial Highlights for Second Quarter 2023

• Revenues and Profits:
  • Total revenues: RMB 34.1 billion ($4.70 billion), up 15% year-over-year.
  • Baidu Core revenue: RMB 26.4 billion ($3.64 billion), up 14% year-over-year.
  • iQIYI revenue: RMB 7.8 billion ($1.08 billion), up 17% year-over-year.
  • Operating income: RMB 5.2 billion ($718 million).
• Expenses and Margins:
  • Cost of revenues: RMB 16.2 billion ($2.23 billion), up 7% year-over-year.
  • Selling, general and administrative expenses: RMB 6.3 billion ($869 million), up 32% year-over-year.
  • R&D expense: RMB 6.4 billion ($880 million), up 1% year-over-year.
  • Non-GAAP Baidu Core operating margin: 25%.
• Other Financial Metrics:
  • Total other income, net: RMB 1.4 billion ($189 million), up 807% year-over-year.
  • Income tax expense: RMB 1.3 billion ($175 million).
  • Net income attributable to Baidu: RMB 5.2 billion ($718 million).
  • Adjusted EBITDA: RMB 9.1 billion ($1.26 billion).
• Cash and Investments:
  • Cash, equivalents, restricted cash, short-term investments: RMB 201.5 billion ($27.79 billion).
  • Free cash flow: RMB 7.9 billion ($1.09 billion). source

a date to remember for all the Google services users in China. The  netizens  in China, especially Gmail users received a poisoned gift from China : the complete blocking of all Google services.

Google is completely out of the picture in China

Indeed, we suppose that China and particularly GoldenShield, the Chinese firewall, decided to fully block the Google services for reasons still unknown. However there only suppositions given because Hua Chunying, Chinese Government Spokesperson asserts not knowing the cause of the blocking and thus, rejects all liability and declares at the same time that Beijing will supply as soon as possible the best help necessary for the foreign investors in China. However, many people remain skeptical about this statement due to the existing tensions between Google an China. One thing is certain though, the blocking is not caused by  any  technical problem coming from Google services.

Historical events, internal politics or outside causes?

Let us remember that since 2010, annoyed by the relentless censorship of the Chinese government and the attacks on Chinese fighting for human rights, the multinational Google preferred to leave China (Google.cn) and go to Hong-Kong (Google.com.hk) considered more advantageous legally . Nevertheless, some of its products such as YouTube or Picasa continue to be blocked in China. It was true that since June 2014, the 25^th anniversary of events that happened in 1989, an event considered taboo by Beijing, and heavily censored, especially around the time of the anniversary in China. Censorship that is still there by the way.

The consequences for foreign investors in China

According to some, the purpose of this scheme would be to weaken on both national and international the Google presence. China persist to have the power and the last word on the internet. New York Time declared at first that “no solid proof shows that China completely blocked Gmail” but named the Chinese State of “totalitarian State” in an article. Still farther, the American ministry spokesman, Jeff Rathke, mentioned wanting the cessation of the Gmail blocking and in the same time called reminded in China the fatal image they send to foreign companies considering these various blockings.

This new blow carried on multinationals will have some significant economic impacts . In fact, its message service Gmail distinguished itself from the competitors and satisfy the consumers request to raise the first place. Of course, it also pulls a reduction on the traffic.

In answer to this blocking Chinese and foreigners alike expressed annoyance about this blocking. Demonstrations from angry Chinese demanded this Monday, the return of Gmail.

Drop SEO Google, embrace SEO on Chinese search engines to improve your sales in China!

It is true that since last year, internet was the refuge of many criticisms of the regime and thus that is the reason why the Chinese communist party controlled it completely. Still arrests took place this year against Internet users and journalists

Since Google is now completely out of the picture is has become even more vitally important for foreign companies to rely on Chinese search engines and the services. However they are completely different and need to be considered as brand new entities. If you want to go into the Chinese market you must know how to use these new search engines like Baidu or 360 among others.

It is our expertise, we are a SEO agency specialised in Chinese search engine. Contact us for more information.

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