Companies seek to tap booming market, play catch-up with established local sites

Google and MySpace are increasing their efforts to establish themselves in China, the second-largest Internet market behind the United States.

Google Inc., No. 2 in China's Web search market, is giving its local managers more autonomy and investing more in China in an effort to make up for its late entry and take the lead in the industry, Chief Executive Officer Eric Schmidt said Friday.

"We are catching up. Our investment is working and we will eventually be the leader," he told reporters.

Read more: sfgate.com