Bay tech business eyes China

The creators behind a Tauranga developed search engine have reached a deal that allows them to operate in the Chinese market, which is expected to earn it millions.
Pingar, the Tauranga based tech company that developed a "next generation" search engine, has created a Chinese language version of it.


Compose Systems chairman Tom Sit and Pingar founder and director Peter Wren-Hilton in Hong Kong after the announcement that Pingar was making large inroads in the Chinese search engine market.

The company's CEO and co-founder Peter Wren-Hilton estimates the deal will be worth millions to the company over time.
Peter made the announcement in Hong Kong on Monday, only a few days after internet giant Google announced it was withdrawing from China because of censorship conflicts with the Chinese government.
"The potential of the Chinese market is huge, particularly with Google's recent withdrawal. Google had 35 per cent of the Chinese market."
He believes Google will return to China in the future, but says its absence will allow time for Pingar to establish itself.
"It's created a significant dislocation in the search engine market and 35 per cent of the Chinese internet market are trying to use other search engines."
Peter says it is difficult for search engines such as Pingar to enter the Chinese market.
The company waited until the free trade agreement between New Zealand and China was finalised, which included the signing of the Closer Economic Partnership Agreement with Hong Kong.
"New Zealand is the only country to have a free trade agreement with both China and Hong Kong."
He says access to the Chinese government, enabling Pingar to expand into the country, can be quite limited, but the free trade agreement gave New Zealand "most favourable status" and made the negotiation process easier.
Peter will make a number of visits to Beijing throughout 2010.

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