As its quarrel with Beijing fades into the distance, internet search giant Google is expanding investments on the mainland amid new online advertising opportunities and the rapid adoption of its Android mobile software on locally made smartphones. 'Mobile, display [advertising] and search remain vibrant parts of our business in China,' said Daniel Alegre, Google's president of AsiaPacific operations. 'That is why we're hiring and continuing to invest in localising our products in China, as well as supporting the country's entire internet eco-system.' Alegre did not provide figures, but said: 'We've been able to make large investments in Asia that benefit internet consumers in every country we operate in.' As an example, he cited Google's engineering teams in Shanghai and Beijing, which focus on creating products designed for both the mainland and international markets. The company, which reported a 32 per cent year-on-year increase in second-quarter revenue to US$9.03 billion, said it expected to continue making significant capital investments for the rest of the year. Globally its capital expenditure last quarter reached US$917 million, most of which was related to land and building purchases, and information-technology infrastructure investments on data centres, servers computers and networking equipment. In January, Google said it was hiring more than 6,000 staff worldwide this year to surpass the 4,500 it added last year. It was employing 28,768 full-time employees at the end of June. It's biggest single investment this year has been the US$12.5 billion acquisition of handset maker Motorola Mobility, which is expected to close by the end of this year or early next year. 'The way Google looks at acquisitions is to put a lot of emphasis on the human capital, particularly in engineering,' Alegre said. 'We know that Motorola has strong technical expertise across Asia and the globe.' On the mainland's mobile devices manufacturing front, Alegre said Google was working with various partners on incorporating the capabilities of its Android operating system to their internet-ready smartphones. 'We're seeing a steep growth in adoption,' he said. According to market research firm Canalys, that growth was bolstered by strong Android-based products released worldwide by Huawei Technologies, ZTE Corp, Samsung Electronics, HTC, Sony Ericsson and Motorola. It estimated the global Android device market share reached a record high of 48 per cent in the second quarter, up from 33 per cent six months earlier. Google estimates that more than 550,000 Android devices are activated each day worldwide. 'Android increases the amount users search, which creates revenue opportunities for Google,' Alegre said. 'With more devices on the free Android platform, this standardisation has helped smartphone prices drop to the US$70 to US$100 range while delivering features that used to be found on more expensive phones.' Alegre said online display advertising from mainland exporters remained strong for Google since overseas buyers searched these vendors through Google. Market research firm iResearch, however, said Baidu continued to lead the mainland in terms of internet search revenue, with a 77 per cent market share in the second quarter, compared with 20.1 per cent for Google.