They didn't. Google predates Baidu by two years. It's possible they could be talking about a specific technology, but not likely. Google had a Chinese subsidiary at one point in time, but stopped bothering as the government got in their way and assisted Baidu at every turn. Like with most situations where a foreign company competes with a Chinese one.

And that's before you get into the fact that China really doesn't want any foreign info-based companies operating in its borders, given their heavy propaganda machine. They'll tolerate it only until they can clone it and expel it.