Li Yanhong

From Microsoft to Yahoo! (YHOO), no company has been able to go head to head with Google in search and hold its own. Except for one. In China, Baidu.com (BIDU) is far ahead of Google in Internet search, and Robin Li’s company gained market share in 2007 despite the best efforts of Google’s China team. But Baidu has also been the target of the music industry’s wrath since recording companies claim a key reason for Baidu’s success is its willingness to promote illegal downloads of music. How Li handles this challenge in the new year will go a long way toward determining whether Google has a chance to catch up in the world’s second-largest Internet market.

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