Xinhua News Agency had announced that it will launch its own search venture. According to Xinhua, this will give Google its topmost and well-financed competitor following to the closure of a China-based web search engine.
Xinhua stated that it already has signed a framework agreement with China Mobile Ltd. on Thursday. Their agreement was for Xinhua to “set up a search and international media company. According to a source, the team is already on its “substantive operation stage.”
The target device is not yet given clarity to whether it will venture on Internet-based or to mobile phone-based searches. Actually, the company can have both devices because China has a large number of market regarding Internet and mobile-based searches. China has 420 million Web users and more than 600 million mobile phone accounts.
The source refused to give some more details about Xinhua’s search project.
The communist government of China is in much support with this new plan of Xinhua. In fact, China wants to build up its country in terms of the technology industries. The Chinese government, actually, gives billions of dollars to Xinhua and other state media so that they can “expand their presence to foreign markets.”
Xinhua considers this new project having good outcomes in the near future because of Xinhua’s large news report and China’s vast mobile subscription. But the difficult part of entering this new project will be the loyalty of the users in following the new project.