If China's internet industry has the responsibility to compete internationally and go global, do Chinese internet companies need to follow Japanese companies and make English their 'official language'?

In my opinion It's not a question for Chinese companies, but for  "global" companies. There are two factors: customer and demand, those are factors will influence companies' decision, Not the level of English. I could say the English level of Alibaba may not be good as Baidu or Youku, But http://Alibaba.com is one of the best company in global market, not Baidu or Youku. Hope this answer helps.

Language may not be the major issue, as any international or multicultural experts would argue that it is the industry standard and mentality that the Chinese startups need to improve. I do not have doubts on the high level executives in their ability to communicate both verbally and written in English, however, it is a completely different level of consideration on the accuracy and professionalism in their English expression. Regardless to say, there are jargons in each industry and emerging terms one needs to master as fast as any silicon valley gurus. This is impossible to achieve if one doesn't consume English on a daily basis and has access to the most up to date market trend and analysis (most likely going to be in English). Regardless, a bigger obstacle is the mentality and business philosophy. Any marketing agency here in the U.S. who had experience working with a Chinese company would know this. There is a significant lack of awareness and understanding of branding in China. Many look down upon the importance of market research, consumer insights, account planning and even branding strategies (excludes the top ad agencies which are mostly regional offices). These are all fundamental elements in brand building that even an entry-level marketing associate would not neglect. This is also part of a bigger discussion of business models: Do you need to build your empire on an International standard in order to go global?

Actually I don't think English/language is hurdle for Chinese Internet firms going international. As I know, tons of talents in Chinese Internet companies can fluently speak/write English ...more importantly, the INTERNATIONAL mindset, innovations, strong respect to people/employees, etc are much more important in terms of INTERNATIONALIZATION. Just like a Chinese living in US/Europe doesn't necessarily mean this guy is international, sometimes maybe more "Chinese" than people in Beijing or Shanghai...Many Chinese Internet giants became "Giants" due to the big local market and monopoly profit, which doesn't ensure their capabilities for their internationalizations. The best International Chinese company, my opinion, is HUAWEI!

Actually, you may want to consider the possibility that the Western world may soon have to speak Chinese to do business with Chinese companies going global. In my mind, in 10-15 years from now, not speaking great Chinese will be the same as not speaking great English today : you will be able to perform on your own market but not globally.

You  can not say that again! Because, many chinese people realized the importance of English .As far as i am concerned,in the future,many chinese companies will have a bilingual enviroment,Chinese and English. you know,this trend itself is gonna meet the demand of comprehensive talented personnel!