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Edition: U.S. Article Comments (5) Save Email Print Reprints Most Popular Most Shared NBC's Leno drama might have a happy ending 13 Jan 2010 Troops, food headed for Haiti as quake toll soars | Video 10:21am EST Hymns, children's cries fill Haiti's night 3:23am EST China defends censorship after Google threat | Video 9:02am EST Al Qaeda linked to rogue aviation network 13 Jan 2010 Al Qaeda linked to rogue aviation network 13 Jan 2010 U.S. 2009 foreclosures shatter record despite aid 5:23am EST Hymns, children's cries fill Haiti's night 3:23am EST Chronic sleep loss hampers performance 13 Jan 2010 Netflix in deal with Nintendo to show movies on Wii 13 Jan 2010 Little future for Google in China without search Alexei Oreskovic and Melanie Lee Thu Jan 14, 2010 9:02am EST Related News Google could find new road in China 8:17am EST Google drama stokes online nationalism, regret in China 1:59am EST U.S., Google and China square off over Internet Wed, Jan 13 2010 U.S. urges China to work with Google on security Wed, Jan 13 2010 Wall Street frets over Google's future in China Wed, Jan 13 2010 SAN FRANCISCO/SHANGHAI (Reuters) - Google Inc, involved in high-stakes brinkmanship with the Chinese government, might still seek ways to market other products in the country even if it quits its China search business. Technology | Media But without search, its most important business in China, the technology giant would struggle to retain a foothold in the world's biggest Internet market by users, said analysts. Google said on Tuesday it was no longer willing to censor search in China through its Chinese-language website Google.cn, putting it squarely at odds with the Chinese government, which has banned Twitter, Facebook and YouTube. China, which prizes political stability and control, has since robustly defended its use of censorship online and is unlikely to yield to Google's requests to run an uncensored search engine within their borders, analysts said. "We believe that the Chinese government and Google will not be able to easily (reach a) compromise," said UBS analyst Wang Jinjin in a research note. Google currently offers Google Maps, Gmail and free music downloads to Chinese users, all of which could be in jeopardy if the company walks. The most promising non-search area of business for Google, said analysts, is its Android platform, an open source mobile operating system, already adopted by China Mobile's OPhone and Dell's Mini 3, which was launched in China late last year. But even this product could stall if Google were to no longer offer its most popular services. "Android ... has potential but if it offers any of the Google services like Gmail or search then it may have a problems once Google leaves," said iResearch analyst Hao Jun Bo. Other Google products hold even less promise in China's tightly controlled online market. Those include Google Voice and Google Books, a searchable digital library comprising millions of scanned books. Google Voice, a service that allows users to place calls over the Internet, would likely encounter similar difficulties to those seen by Internet firm Skype, which offers a similar service. The free version of Skype is often blocked by government censors and a special version is monitored by Chinese authorities. Google Books faces other difficulties, including legal challenges. Last October a group of Chinese authors accused Google of infringing their copyrights by scanning their works into the Google Books library. Google has since issued an apology for the lack of communication. POSSIBLE COMPROMISE? Google, which competes with Baidu Inc in China's $1 billion search market with over 360 million users, has said it views China as an important market. The firm, which fought communication companies to crack open the wireless phone market and in the end opted to partner with some incumbent wireless firms rather than to go it alone, has a pragmatic streak. This leaves open the possibility that Google and Beijing could reach a compromise that involves censorship, but not by Google itself. Under this scenario, the government would censor through its own firewall, but Google would not directly censor results on Google.cn, said Stanford University Graduate School of Business Professor Haim Mendelson. While Mendelson said he thought it was more likely Google would leave China, he said a compromise could give both sides something they want. China wants to maintain its image at home and abroad, and being rebuffed by Google does not help. "Google has some interest in maintaining a presence in China, and the Chinese government has an interest as well," said Mendelson. "The Chinese government wants to project an image of the country where they do want U.S. companies to be present." (Additional reporting by Joanne Chiu, Editing by Don Durfee and David Cowell) Technology Media Comments See All Comments (5) | Post Comment Jan 14, 2010 Although thwarted temporarily, it is only a matter of time before transparency arrives in China and other societies that attempt to control information. Patience. iVoteAmerica.com iVoteAmerica Report As Abusive Jan 14, 2010 Wait and See. hotmeal117 Report As Abusive Jan 14, 2010 “China, which prizes political stability and control, has since robustly defended its use of censorship online and is unlikely to yield to Google’s requests to run an uncensored search engine within their borders, analysts said.” Since when is change from governmental authorities ever an issue? hotmeal117 Report As Abusive Jan 14, 2010 Google has more intestinal fortitude than our Canadian Prime Minister who allowed himself to to be “scolded and chastised” like a grade school child by the Chinese Govenment. Go GOOGLE! wngf Report As Abusive Jan 14, 2010 Google should buy Tencent Holdings Limited. QQ has over 300 million user, the company is poised to beat Baidu in a few years with the right support, and with that many users the Chinese Government would think twice about it censor. yeahright Report As Abusive See All Comments (5) Add a Comment More from Reuters Retail sales unexpectedly fall, jobless claims up WASHINGTON (Reuters) - U.S. consumers curbed their Christmas spending in December and more people filed claims for jobless benefits last week, casting fresh doubts on whether the economic recovery can last once government support fades. Obama to propose bank fees to recoup bailout funds China defends censorship after Google threat | Video SEC eyes products structured before housing bust Wall Street higher on Intel hopes, despite retail data Cadbury up on Hershey bid hopes, doubts remain » More Top News Haiti quake leaves many dead A major earthquake toppled the presidential palace and hillside shanties alike, leaving the poor Caribbean nation appealing for international help. Full Article | Slideshow Live coverage of the Haiti earthquake Factbox: Quake-stricken Haiti Send us your photos and videos NATURAL DISASTERS Exclusive: Al Qaeda linked to air network Homeland Security ignored a report detailing a clandestine fleet of executive jets regularly crisscrossing the Altantic on drug runs. The problem is now a global security threat. Full Article Graphic: Trafficking to Europe Three in al Qaeda case plead not guilty Mexico © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal ECVJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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