Google takes stake in Chinese search engine

Google has taken a stake in leading Chinese internet search tool Baidu, paving the way for potential co-operation between the two rivals.

Baidu is the world's second largest independent search engine.

The world's most widely-used internet search engine will also examine other "collaboration opportunities", it reported today.

No details were released of the size of the minority stake or how much Google has paid for it.

Analysts believe international internet companies' are keen to enter the fast-growing and potentially pivotal Chinese market.

Baidu, which was set up just four years ago, makes around 80% of its revenues from selling search-specific links and the rest from standard advertising and corporate services.

It has established itself as one of China's most powerful players.

The company says local research suggests it accounts for over 48% of searches by Chinese internet users, with Google coming second with slightly under 30% and Yahoo and 3721 together accounting for just 13%.