The Chinese government had probably grown uneasy with 百度 (baidu)‘s growing clout, which had meant that the state have very little leverage against Baidu if the need arises; the state cannot simply block access to Baidu, as a recent study by iResearch had revealed that Baidu had 83.6% of China’s search engine market.
As such, it is likely that their strategy is to introduce a sizable competitor in order to gain leverage against Baidu in the future. To that end, they have lent their support to 盘古搜 (panguso.com) – a newly unveiled China search engine that was built by the 新华 (Xinhua) – 中国移动 (China Mobile) partnership.
That said, 盘古搜 (panguso.com) is no lame duck; it tries to differentiate itself with its focus on news, unlike other search engines which usually focus on web pages. This is evident from its search results defaulting to the “News” category instead of “Webpages”. Furthermore, 盘古搜 (panguso.com) also introduced a way where users could share a search result via SMS, though currently it’s only available to China mobile subscribers.