NEW YORK (TheStreet) -- Short of living in a cave for the last decade or so, there can be few Americans not aware of Google (GOOG) and Yahoo! (YHOO). But what about fast-growing rivals like Baidu (BIDU) and SINA (SINA)?
Both companies are up-and-coming web search firms making waves in China. While China's phenomenal economic growth has been well documented, many U.S. investors are still green when it comes to evaluating the Asian country's booming technology sector. While the U.S. has been saddled with news of banking bailouts and multi-billion dollar healthcare reforms, the Chinese government has been quietly implementing its own stimulus package, worth a massive $585 billion.
Around $54 billion of this sum has been earmarked for technology advancements, underlining the growing momentum behind the country's IT sector.
"I think that there will certainly be investment opportunities [in China]," Jennifer Belissent, senior analyst at research firm Forrester, told TheStreet. "I think we're going to see Chinese companies emerge in all technology domains."We have, of course, already seen at least one Chinese firm stamp its mark on the U.S. technology landscape. Back in 2005, Lenovo sent shockwaves through the sector when it bought IBM's (IBM ) PC business for $1.75 billion. Other Chinese tech firms are now becoming more visible to investors on this side of the Pacific, including Shanda Interactive (SNDA ), a gaming giant and competitor to Electronic Arts (ERTS ). One note of caution: the country's emerging economic status could make Chinese companies subject to greater volatility than their U.S. counterparts. Just last month, for example, China's government clamped down on bank lending in an attempt to harness China's rapid economic growth, which impacted stocks.
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