China’s Search Business Growing Fast, But Lags Behind U.S.

China’s internet market is growing fast. Search engine revenue grew 20.3 percent through Q3 to 5.38 billion yuan, according to Analysys.

That’s $845 million per quarter, up 65 percent from a year ago.

But, though China has become the world’s most populous internet market, its search industry pales compared with America’s…

Chinese search revenue in the firs thalf of 2011 was 7.57 billion yuan ($1.18 billion) according to Analysys, compared with $7.3 billion according to the IAB.

That would make China’s search market about a seventh the size of America’s.

Analysys credits China’s growth to improved search engine products. Over the last year, market-leading Baidu (NSDQ: BIDU) has stolen Chinese search revenue share from Google (NSDQ: GOOG), according to iResearch.

Analysys’ quarterly revenue figures are broadly in line with iResearch‘s.