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Microsoft's (MSFT) Online Opportunity In China

Unlike most counties, China’s top websites are not Yahoo! (YHOO) and Google (GOOG). According to a new Asia internet study by comScore, two of the top three sites in China are Baidu (BIDU), the country’s top search engine and Tencent, the instant messaging site.

But, the most visited web destinations in China are the Microsoft (MSFT) sites. Some of this traffic is clearly to parts of Microsoft’s online presence related to its desktop, server, and other products. But, some significant portion of its is undoubtedly directed to MSN and Live.

Microsoft has an edge in China that Google and Yahoo! do not. It can use traffic to its internet properties to promote is MSN and Microsoft Live search features.

China still only has a 9% penetration of internet users compared to 59% in Hong Kong.

It is an opportunity that Microsoft cannot afford to let pass.

Douglas A. McIntyre can be reached at [email protected].

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