From everything we know, this is pretty accurate. Baidu is well known for providing links to all kinds of pirated content, which is technically illegal in China for search engines to do. Strangely enough, whenever Google would do this authorities would crack down, but Baidu gets away with it.
Taobao is a marketplace a la eBay, and the US Trade Representative says that sales of counterfeit goods are rife there, which hardly seems surprising. Taobao is owned by Alibaba Group, the biggest e-commerce company in China, which was recently embroiled by a fraud scandal.
China’s Ministry of Commerce wouldn’t comment.