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Edition: U.S. Article Comments (36) Slideshow Video Save Email Print Reprints Most Popular Most Shared Florida says several states to file healthcare lawsuit 22 Mar 2010 Republicans target Democrats on US healthcare reform 22 Mar 2010 FACTBOX-US healthcare bill would provide immediate benefits 19 Mar 2010 UPDATE 1-Virginia to sue U.S. over healthcare reform 22 Mar 2010 Wal-Mart to slash grocery prices 19 Mar 2010 FACTBOX-US healthcare bill would provide immediate benefits 19 Mar 2010 Factbox: Healthcare bill would provide immediate benefits 22 Mar 2010 Florida says several states to file healthcare lawsuit 22 Mar 2010 UPDATE 1-Virginia to sue U.S. over healthcare reform 22 Mar 2010 Virgin Galactic spaceship makes first test flight 22 Mar 2010 Google risks China's ire with slap to censorship Chris Buckley and Melanie Lee BEIJING/SHANGHAI Tue Mar 23, 2010 2:06am EDT Factbox Factbox: Google's footprint in China Mon, Mar 22 2010 Related News Chinese express regret, anger at Google move 1:47am EDT Timeline: Google shutters Chinese site, moves to Hong Kong 2:06am EDT Instant View: Google shifts China service to Hong Kong Mon, Mar 22 2010 For Google stock, China could mark turning point Mon, Mar 22 2010 Q+A: China-U.S. dispute over Google seen lingering Mon, Mar 22 2010 Text of Chinese official comments on Google Mon, Mar 22 2010 Related Video Google China redirects to Hong Kong Mon, Mar 22 2010 Business Update: Google slips < 1 / 2 > View Full Size BEIJING/SHANGHAI (Reuters) - Google Inc shut its mainland Chinese-language portal and began rerouting searches to an uncensored Hong Kong-based site, unleashing a blast of ire from Beijing and prompting concerns over its future business in China. Technology | Media China lost little time in warning Google that its rejection of self-censorship angers the one-party government, which is wary of ceding control over domestic use of the Internet with 384 million users in China. The decision comes amid heightened tensions between Beijing and Washington over a range of issues, from Internet freedom to the yuan exchange rate, economic sanctions on Iran and U.S. weapons sales to Taiwan. "Google has violated the written promise it made on entering the Chinese market," said an unnamed official from China's State Council Information Office, which helps oversee Internet rules, according to the Xinhua news agency. "It is totally wrong in halting (censorship) filtering of its search provider," said the official. "We firmly oppose politicizing commercial issues, and express our dissatisfaction and anger at Google Inc's unreasonable accusations and practices," said the official. Google said on January 12 it would no longer censor its China-based Google.cn search portal and was also alarmed by hacking attacks from within China. Google acted on that threat, throwing the burden on Beijing to apply its own censorship filters to keep Chinese users from seeing banned images and words when rerouted to the company's Hong Kong site, google.com.hk. Google said it intends to continue research and development in China, and keep sales staff there. But the company is likely to be closely watched by officials, possibly emboldened after months of friction with Washington. "I don't think it's sustainable for Google to conduct rerouting of traffic," said Edward Yu, chief executive of Analysys International, a Beijing-based research firm specializing in technology issues. "The thing that makes the government unhappy is this kind of gesture. That Google will not follow (the rules), and that gesture will anger the government so they may set up barriers against Google." Analysts said it was possible Google's plans for other services in China, such as its Android smartphone software, could be jeopardized by its move. "Ordinary (Chinese) Internet users won't be much affected, because the only difference they'll see is that the burden of censorship has shifted from Google to the government," said Wang Junxiu, a Beijing-based Internet entrepreneur who has campaigned against online controls. "But Google's business may take a hit. Advertising may fall, and (Chinese) companies that have invested in joining up with Google innovations and content will be hurt," said Wang. AN IMPASSE An impasse seemed likely after Google challenged China's ruling Communist Party, is wary of any political challenges in the world's third biggest economy. China gave no ground on the censorship issue in its dealings with Google, the company's Chief Legal Officer David Drummond wrote in a blog post Monday. But he also wrote that "the Chinese government has been crystal clear throughout our discussions that self-censorship is a non-negotiable legal requirement." Before Google made the move, users of Google.cn saw a warning that content banned by the government could not be viewed whenever they made a search. Searches on the Hong Kong website from mainland broadband lines for sensitive news and discussion about jailed dissidents and banned organizations gave links to sites that google.cn previously did not. However, these pages could not be opened. Google.com can still be accessed from China. While Google is the world's top search engine, it held only an estimated 30 percent share of China's search market in 2009, compared with home-grown rival Baidu Inc's 60 percent. Google's decision Monday, therefore, won't have an immediate impact on earnings, analysts say. GOOGLE SHARES FALL; BAIDU GAINS Shares of Google, which have fallen more than 6 percent since January when it announced plans to stop censoring searches in China, closed Monday's trading session down $2.50 at $557.60. Shares of Baidu, which have soared more than 40 percent during the same period, finished up $10.07 at $579.72. China requires Internet operators inside the country to block words and images Beijing deems unacceptable. Google.cn used such a filter. Internationally popular Websites Facebook, Twitter and YouTube are blocked in China, which also uses its own filtering "firewall" to block Internet users from overseas content banned by authorities. Google said it was "entirely legal" for it to re-route traffic to an uncensored Hong Kong site, which uses simplified Chinese characters and is specifically designed for users in mainland China. A former British colony, Hong Kong is a special administrative region of China and enjoys more freedom, including an uncensored Internet, than mainland China. But Google acknowledged that the Chinese government could at any time block access to the services, which include Google search, news and images. (Additional reporting by Ben Blanchard, Alexei Oreskovic, Edwin Chan, Gabriel Madway, Paul Eckert and Alister Bull; Editing by Ken Wills and Jean Yoon) Technology Media Comments See All Comments (36) | Post Comment Mar 22, 2010 8:30pm EDT First to comment~~~ From Google’s point, right move, as it avoids some conflict with the Chinese gov and still can keep doing business in China. From Chinese gov’s point, no that good but ok, as Google lost to some extent. From other International User(except Chinese)’s view, not so good, as some of them expected Google to avoid pure evil(China) and stood by their whatever moral. Fools, keep on defending coporate action. LOL Report As Abusive Mar 22, 2010 8:41pm EDT Just checked google.cn aka google.hk, yes everything is uncensored and no everything is still censored. You are able to know search keywords which were not allowed to know such as Dalai Old Dog, but you are still restricted from searching it. The firewall is still there. Doesnt make much difference LOL Report As Abusive Mar 22, 2010 8:47pm EDT Nice move Google. China? your turn. Story_Burn Report As Abusive Mar 22, 2010 9:13pm EDT Btw, the 4 Rio employees pleaded guilty in court, admitting recived bribery from 3.75mio rmb – 75mio rmb. Of course, people can say they are forced or tortured or whatever. However, I just want to make this easy, whoever the Chinese goverment is against must be a saint(everything is Chinese fault). This view is held by many people. So what about Bin Laden? I remember yesterday some thing is barking long paragraph that Chinese investment environment sux big time and he ’suggests’ no one invest in China and he had already done so. Sigh, maybe this thing is just another Rio Tinto employee alike that got lucky and avoided punishement… Lets all crush China with whatever reason we have or believe~That will solve our domestic sucky problem~ Oh yeah~ LOL Report As Abusive Mar 22, 2010 9:48pm EDT quote: ======= Nice move Google. China? your turn. ======= it’s no TURN to china…. if google want to go, just go. no much things changed for chinese. urgod Report As Abusive Mar 22, 2010 10:17pm EDT Americans are celebrating Google’s moving out of China. And Chinese are celebrating Google’s moving out of China, too. Google has never understood China as well as Microsoft, IMB, HP and Cisco. You feel sorry for China and Chinese to lose Google? You are totally wrong. As I just said, Chinese are celebrating Google’s moving out of China, too. Yanghaoshi Report As Abusive Mar 22, 2010 10:19pm EDT The chinese government lost this argument when they refused to investigate the criminal act of hacking Google’s data base. In their eyes, if foreigners (google) break the law you have to punish them; if chinese (the hackers and probably working for baidu) break the law you have to ingore them and just say “that is business as usual in china.” LOL: In China, everything is “blame the foreigner.” So, it is only natural that in other countries we see this attitude you have in china and adopt it. If china can point fingers, so can we. blahhhhhh Report As Abusive Mar 22, 2010 10:24pm EDT My uncle was in the Flying Tigers before the start of WWII. A group of pilots went to defend China against the Japanese invasion. He died fighting the Japanese. Now China doesn’t even teach this story to its children. What does this say as to the heart of China. My family gave its life for China, China forgets. dawhite Report As Abusive Mar 22, 2010 10:28pm EDT @Yanghaoshi we should make it a holiday~~~ lol. urgod Report As Abusive See All Comments (36) Add a Comment More from Reuters Google risks China's ire with slap to censorship BEIJING/SHANGHAI (Reuters) - Google Inc shut its mainland Chinese-language portal and began rerouting searches to an uncensored Hong Kong-based site, unleashing a blast of ire from Beijing and prompting concerns over its future business in China. | Video Obama to revel in hard-fought healthcare victory | Video Asian shares up near 2-month peak | Video Fed to keep pro-growth policies: Chicago Fed chief Time Warner leads bids of up to $1.5 billion for MGM U.S. judge orders release of Guantanamo detainee » More Top News Reuters Breakingviews: Not as cheap as it looks The debate over fair value for the yuan is far from over, but a revaluation may not be the cure-all U.S. politicians are looking for. Commentary Case for appreciation not iron-clad "Too much noise" on yuan China Now comes the hard part With the healthcare victory under his belt, President Obama now has to sell it to dubious Americans as Republicans gear up their attack. Full Article GOP targets Democrats on healthcare Next battle in healthcare: lawsuits Healthcare: Buy now, pay later? Video: Healthcare reform scorecard Healthcare Reform © 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 Venture Capital Journal International Financing Review 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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