A story at thinq.co.uk says that former Google employees are helping Baidu launch a Linux smart phone to rival Android.
http://www.thinq.co.uk/2010/7/21/googles-china-rival-create-android-os/

"According to reports in the Chinese media, the move is being led by former Google employees who were poached by Baidu after Google ended the self-censorship of its search results. Baidu has wooed Google China's former vice-president of engineering, and the technical director of the Google academy of engineering, to head the project."