Baidu Company was established in Silicon Valley of the United States at the end of 1999. Its founder, Li Yanhong, holds an American green card. The start-up capital of Baidu is American venture capital, and American capital accounts for more than 5 1% of Baidu.
Baidu is divided into overseas part and China part. One of the overseas companies is registered in the British Cayman Islands (Baidu.com.Inc) and the other is registered in the British Virgin Islands (Baidu Holdings Limited), both of which are American-funded. Subsequently, Baidu registered two subsidiaries in China-Baidu Online Network Technology (Beijing) Co., Ltd. Baidu Online Network Technology Company, referred to as "Baidu Online" and Baidu Netcom Technology Co., Ltd., Baidu Network Technology Company, referred to as "Baidu Network", the latter of which is a Chinese-funded company.
In June 2005, Baidu also established its second wholly-owned subsidiary, Baidu China Co., Ltd. (Baidu China Co., Ltd., generally referred to as "Baidu China") in China.