Meanwhile, Lee's world has changed. He met journalists September 7 in a building near Google's China headquarters in Beijing, three days after saying he would resign to start a venture capital fund.
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Lee Kaifu |
Lee said his Google job was all about "maintenance" -- maintaining government relations and helping the company stay within its boundaries. But it wasn't his cup of tea.
"I am a person who lives for innovation, not maintenance," Lee explained.
One of his biggest challenges came last June, when the China Internet Illegal Information Reporting Center said Google made pornographic and inappropriate material available through its Chinese search engine. The Chinese government responded by blocking Google on the mainland.
It was at that time, Li said, that he hatched a plan for a new venture. Lee told Caijing that he was finding it hard to put his heart into the job at Google.
Google didn't name a replacement for Lee but said his tasks would be handled by two executives. The company said Yang Wenluo would take responsibility for engineering and development, while the current global vice president in charge of Greater China marketing, Liu Yun, would handle business operations.
Fond Farewell
In his book, Lee writes about his decision to quit and submitting his resignation at Google's head office in the United States in August.
Next, with business plan in hand, Lee held intensive meetings with investors. He got support from individuals such as Liu Chuanzhi, head of Legend Holdings, Guo Taiming, president of Foxconn, Yu Minhong, president of New Oriental Education Group, and YouTube co-founder Chen Shijun.
Li said he received investment commitments exceeding US$ 100 million. He wants to be known as "Master Lee" -- a leader for young founders of a new enterprise.
Lee also thinks it's time to pass the torch at Google China.
Lee worked hard to restore Google's status after a series of government blockages in 2006, the year Google's market share shrank to 13 from 30 percent. He helped Google gradually adapt to the Chinese environment, although he said the process was frustrating.
The research firm Analysys said Google's market share in China rose to 31 percent in the second quarter 2009, up from 16 percent in 2006. Domestic search engine Baidu commands a market share that's twice Google's in China.
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An industry source told Caijing that Lee has done what he can for Google and it's time to move on, to fulfill his destiny.
Life after Lee
Google was by no means caught off guard by Lee's decision. Long before he quit, the company put Liu Yun in charge of Google China sales. Now, according to Xie Wen, an industry analyst, Liu reports directly to U.S. headquarters.
Liu joined Google China in January 2008, taking responsibility for marketing and operations on the mainland, as well as in Taiwan and Hong Kong, and establishing the basis for Google's Greater China marketing and operations.
Earlier, Liu served as CEO for South Korea's SK Telecom in China for six years. He did his most important work in 2007, when he helped SK Telecom buy convertible bonds used to win a 6.61 percent stake in China Unicom. At the end of 2008, SK held a 3.79 percent stake in the Chinese telecom.
In another management move, Google hired Yang Wenluo in March 2007 to oversee search and infrastructure development for China and Asia.
On the same day Lee distributed his autobiography to reporters, Liu announced a 50 million yuan incentive plan for Chinese small- to medium-sized enterprises that have never tried search engine marketing. In addition, he said Google China plans to double the size of its marketing staff over the next six months.
While taking questions from the media, Liu showed off his sales team, saying that under his direction they would burn even brighter.
It's widely believed Google China is eyeing a new competitive strategy. In the future, the company may be more aggressive with marketing, a weak area in the past.
Li Weidong, an analyst at Morgan Stanley, told Caijing the next step for Google is to focus on local brand-building and developing a local product. The search company also can put together a localized marketing team while developing alliances with local Web sites and enterprises.
Liu said the Chinese mobile search market would see high growth momentum as 3G networks mature.
Yang said Google China would continue focusing on "vertical search" products — that is, proprietary Google material for the mobile sector, such as map and music search functions.
As for Chinese Internet regulations, Liu said Google would "maintain complete compliance with local government regulations."