A censored Google isn't more competition. It's just more of what already exists, with different branding.
If Baidu was really doing anything independent, then it would get reined in, like the overseas Chinese real estate firms are.
As for censorship:
"According to the China Digital Times, Baidu has a long history of being the most active and restrictive online censor in the search arena. Documents leaked in April 2009 from an employee in Baidu's internal monitoring and censorship department show a long list of blocked websites and censored topics on Baidu search."
I don't think Baidu came up with that list all by itself.
Real estate firms and other industries like taxi groups are more likely to be directly controlled by princelings, so those are something else altogether. The government has a direct channel into these industries, because they are basically like a state-controlled mafia.
Wait. So are you arguing that Chinese tech businesses are under state control, or that they aren't? Your examples point to a horrible compromise: political censorship with freedom to defraud the public.
Ya, and it does suck for consumers.