Xinhua News Agency and China Mobile signed a framework agreement on Thursday. The sides will set up a new search engine company, to build a world's leading search engine. Xinhua issued the announcement yesterday, but didn't give any details. A new search engine would compete with market leader Baidu Inc. and second-place Google Inc. in China, which had 420 million Internet users at the end of June, more than the size of the U.S. population.

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