Google (GOOG) Redirects Traffic Away From China-Based Site

Internet search giant Google Inc. (Nasdaq: GOOG) has begun automatically redirecting internet surfers away from China-based google.cn to Hong Kong-based google.com.hk.

Google has not provided an explanation or made any announcements regarding the redirect issue but there can be little doubt that it has something to do with Google's ongoing spat with the Chinese government.

Google has said that it will stop filtering search results for web surfers who use its China-based google.cn web site.

The Chinese government reacted angrily, saying that Google must obey Chinese laws if it wishes to do business in China.

So far, the biggest winner in the ongoing drama between Google and the Chinese government has been the China-based search engine company Baidu, Inc. (Nasdaq: BIDU).

Baidu is already the number one search engine in China, with Google a distant second. The prospect of the removal of its closest competitor from the marketplace has fueled the steady rise of Baidu's stock.