The news comes that Google has lost market share in China to native search engine Baidu, which now has a roughly 65% market share according to a report recently issued by US investment firm Bernstein & Co (relying on third party data). Others put the Chinese market even more in Baidu's hands (per iResearch):
It struck me, however, that Android might be a "back door" for Google into increased market share.
There are going to be at least two Android-based phones in the market through China Mobile in the next month or so (from Lenovo and HTC). Smaller rival China Unicom is reportedly working with Apple to launch the iPhone in China. There are also various rumors of a Dell smartphone launch announcement in China (OS unknown) in the next several days.
China is the world's largest mobile market with 700 million subscribers -- more than twice as large as the US population. Having several Android phones in China will give Google another bite at the Chinese search market, so to speak, which may enable the company to gain search share where it doesn't seem to be able to on the PC.
Related: The rumored Dell phone is reportedly to be an Android device.