Chinese Internet search leader Baidu won approval to become an online news portal, government and industry sources said today, heating up a rivalry in the world's second-largest Web market.

China's State Council Information Office (SCIO), granted Baidu an Internet news content service license last week, a government source said, allowing Baidu.com Inc -- often referred to as "China's Google"-- to do its own reporting rather than simply show news search results at present. This will give Baidu a clear edge in terms of content over competitors who lack the permit. This is definitely competition for Google.

Baidu had already started preparing its news department and had been ready to hire news-related staff, said the government source who is familiar with the situation. The company also changed the logo and name of its "Information" channel to "News" channel in Chinese characters on www.baidu.com. An industry source close to the Chinese company confirmed Baidu obtained the license but declined to elaborate. 

China's largest Internet portal, Sina.com, obtained a news service permit a few years ago and carries its own reports. Still, Baidu is the first online search engine in China to win such a license. A news license is a rare resource to Internet companies in China. So far only a few Websites are allowed to report news legally in the country.

Source:未知