Alibaba.com Limited (HKG:1688) and Microsoft Corporation (NASDAQ:MSFT) have partnered with each other to create a new website called Etao. Yahoo! Inc. (NASDAQ:YHOO) owns about 40% of Alibaba.com. Etao has the potential to be a major competitor to Baidu Inc. in China. Etao would also drive traffic to Alibaba’s retail website Taobao.com.