In America, much of Google’s success is attributed to its brilliant employees. In China, there’s no reason that the situation would be any different, but as a bonus, the company could gain a competitive edge by hiring locals.
Google’s poor understanding of Chinese culture has been pinpointed as a reason for its failures in that country; an old Baidu commercial even portrayed Google as a Westerner with embarrassingly poor Chinese-language skills. Hiring Chinese citizens might be an ideal way to overcome this image.
Furthermore, the practice could be beneficial to Google in many other areas. “[T]he nation has such a huge talent potential,” Kai-Fu Lee, the president of Google China, told the AP. “I think there will undoubtedly be innovation in China.”
Innovation is exactly what Google needs – the company’s search market share is approximately one-third of Baidu’s, and has shown little improvement over the past six months. Also, Google’s a bit weak in the mobile department, and cell phones and texting are absolutely taking off in China.
Of course, nothing’s guaranteed to work – it’s not like Google hasn’t tried to reverse its fall in China before. Eric Schmidt has given the division a pretty long leash, however, so no heads are likely to roll in the near future.