The latest report from Analysys International said Baidu had 58.4% of search revenue in the fourth quarter in China, while Google had 35.6%.
"There's no other competitor, so if Google pulls out, Baidu is left by itself," Erwin Sanft, an analyst at BNP Paribas in Hong Kong, told Bloomberg. "If they pull out of China, it's very hard to really get back in the market and still have a similar presence."
Google launched its Chinese Web site in January 2006.Google's announcement comes a day day after Baidu's homepage was attacked by hackers, with some reports saying the group responsible for the attack was the one that took down Twitter last month. -- Reported by Joseph Woelfel in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.