Chinese stock market plunges, drags down US stocks

The Chinese stock market is going through a serious correction, and it’s .

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Challenges for Murdoch in China

News Corp. :

Not sure if this was Murdoch trying to manage expectations but he was emphatic about the difficulties News Corp. faces in China, especially with MySpace. “We don’t do very well in China. … All I would say there is that nobody—and I challenge anyone to argue this—nobody, none of the American media companies or British media companies have made any impact there yet. … It is a vast market, but it is certainly a very, very sensitive one and as we have seen what happened to Google there and what happened to eBay there, it is very difficult, even to—to Yahoo, it is a very difficult market for outsiders.”

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China now No. 2 online

According to Forbes

, the online community in China is exploding, behind the United States.

A fast-expanding online population, estimated to hit 136 million by the end of 2006, has been the engine behind China’s explosive growth in the Internet industry despite the government’s water-tight control of the content that can be made public online.

This growth in the nation’s Internet population–now the world’s second largest behind the U.S.–has driven a 47% surge in total online spending, to 276.8 billion yuan ($35.5 billion), according to a comprehensive annual survey released by the Beijing-based Internet Society of China, a national industry business association.

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