Google Confidential and Proprietary

1

The Chinese Internet

Kai-Fu LeeVice President, Google Inc., President, Google Greater China

June 10, 2009

The China Internet in Perspective…

Overview

Data Source: CNNIC

Usage Differences between China & US

Data Source: CNNIC, iResearch & www.pewinternet.org

Differences in User Demographics

% New users each year: China 25%, US 3%

Average age: China 25 Average age: US 42

Internet Cafe

Greater Reliance on Internet

VS

Exploring Users

They look, click, but they don’t like to type.They look, click, but they don’t like to type.

10 sec. spent on result page 30-60 sec. spent on result page

American UsersAmerican Users Chinese UsersChinese Users

Eye Tracking Results

Ecommerce

Lack of Trust

Very Few Credit Cards

Escrow Payment

Bicycle Delivery

IM Micro Payment

Entertainment Centric & Busy Pages

Top 10 Chinese Internet Companies…

Online Gaming

Music

Free & LegalFree & Legal

Unlicensed musicUnlicensed music

Video

P2P

Social Network Service

Mobility

January 7th, 2009 3G license issued to:

• CMCC (TDS-CDMA)

• CUTC (WCDMA)

• CT (CDMA2000)

January 7th, 2009 3G license issued to:

• CMCC (TDS-CDMA)

• CUTC (WCDMA)

• CT (CDMA2000)

Blog

•162M users has personal blogs

•Visits of Xu’s blog: 238M

980K Visits

7K+ Replies

980K Visits

7K+ Replies

Human Search

Internet in Earthquake

The Chinese Internet…

Inherited from global internet,Inherited from global internet,

Injected local characteristics,Injected local characteristics,

is changing China!is changing China!

Thank You!