Tensions between Baidu, Private Hospitals Indicative of Larger Problem

The Putian (China) Health Industry Chamber of Commerce recently told its members to suspend cooperation with online search giant Baidu Inc. regarding paid promotional activities.

For a long time patients have complained of exaggerated and false advertising by private hospitals, but before this episode Baidu and hospitals were happy to cooperate and make money. Then suddenly Baidu raised its ad prices and started cracking down on false advertizing, leading to the protest by the private hospitals.