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Google to Open R&D Center in China

Posted on: Wednesday, 20 July 2005, 12:00 CDT

Jul. 20--BEIJING -- Internet search engine giant Google will open a Chinese research and development center this year to explore which of its online products consumers want in China, the company said Wednesday.

The Google China R&D Center will open by the end of September at an undisclosed cost and with a staff size not yet fixed, a Google representative in China said.

The center will research, based in a city to be decided later, what it can best offer to China, according to the representative.

This research could mean finding out what Chinese consumers want most, from satellite maps to zip code searches, or localizing products such as Chinese-language searches and free e-mail to Chinese tastes, an IT analyst said.

The center also aims to develop Chinese talent and work with local universities, the statement says.

Google has hired Kai-Fu Lee, a former Microsoft corporate vice president, to lead the R&D center. Lee will also be president of the company's growing China operations, the statement said. Google now has a Shanghai office.

"The opening of an R&D center in China will strengthen Google's efforts in delivering the best search experience to our users and partners worldwide," said the Google statement, quoting Google engineering vice president Alan Eustace.

"Under the leadership of Dr. Lee, with his proven track record of innovation and his passion for technology and research, the Google China R&D center will enable us to develop more innovative products and technologies for millions of users in China and around the world," Eustace said.

Google, popular among Chinese students and office workers because of its speed and index of 4.3 billion Internet sites, competes in China with Microsoft, Yahoo and other companies with search services, e-mail and free downloads.

Founding an R&D center will help Google work its way into the China market, where 100 million people are online and search engine ad revenue is growing, said Duncan Clark, managing director of the consultancy BDA China Ltd.

Last summer the seven-year-old company took its first steps in China.

In June 2004, it launched Chinese-English translation, weather reports and people-tracking services about a week after buying a minority share of Beijing-based search engine Baidu.

A month later the company said it would offer search engine technical expertise to Netease, one of China's top 10 Internet portals, as part of a strategic cooperation agreement.

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Copyright (c) 2005, Kyodo News International, Tokyo

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Source: Kyodo News International, Tokyo

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