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Google versus China
For Google stock, China could mark turning point
An exit from China's search market could mark a setback not only for Google's global business strategy but for a stock that has long been synonymous with virtually limitless growth opportunities. Full Article
What's next for Google's operations in China?
Chinese media launches new attack on Google
Ben Blanchard and Melanie Lee
BEIJING/SHANGHAI
Mon Mar 22, 2010 10:04am EDT
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A man cycles past a Google logo in front of its China headquarters building in Beijing March 21, 2010.
Credit: Reuters/Christina Hu
BEIJING/SHANGHAI (Reuters) - China's state-run Xinhua news agency launched a new broadside against Google Inc on Monday, saying in an angry commentary that the company had reneged on promises to abide by Chinese law.
Technology | Media | China
Speculation is swirling that Google will soon announce a decision to pull out of China, or at least shut down its Chinese search engine.
The Financial Times, citing a person familiar with the situation, said the company could say on Monday that it will close its Chinese search engine.
Google has not formally unveiled any such plans.
Two months since Google said it would no longer agree to abide by Beijing's censorship rules even if that meant shutting its Google.cn site, some Chinese Internet users and state media are baying for the company to pull out.
Xinhua, in a signed commentary, said Google had promised when it entered the Chinese market to filter its search engine for "harmful content," in accordance with the law.
"Now Google suddenly wants to break its promise, and if it's not satisfied it will criticize China for a worsening of the investment environment," Xinhua said.
"This is entirely unreasonable. What has changed is not China's investment environment. It is Google itself."
The burst of angry Chinese comments suggested that, in spite of the widespread popularity of Google amongst educated Chinese, the government is steering state-run media and websites to lump the company together with other recent disputes with Washington that have stirred nationalist rancor in China.
"Get the hell out," wrote one user on the website of the nationalist tabloid the Global Times (www.huanqiu.com), in remarks echoed by other readers.
"Ha ha, I'm going to buy firecrackers to celebrate!" wrote another, in anticipation of the company confirming its departure from the online search market.
CULTURAL IMPERIALISM
Joseph Cheng, a City University of Hong Kong politics professor, said China's ruling Communist Party was deploying nationalism to stifle debate about censorship.
"The criticism of cultural exports, or cultural imperialism, is a kind of defense to justify the Chinese authorities' censorship controls," said Cheng.
"In dealing with the American government, the Chinese authorities will try to emphasize that this is only a commercial dispute and has nothing to do with Sino-American relations."
A Global Times editorial cited online surveys as showing 80 percent of respondents said they could not care less if Google withdrew from China, the world's largest Internet market with an estimated 384 million users.
Though Google has remained mum on the progress of talks, the firm's chief executive said earlier this month that an outcome is expected "soon."
The Google case has spread beyond censorship and hacking and has become a diplomatic knot in Sino-U.S. relations, already being challenged by spats over Taiwan, Tibet and the value of the Chinese currency.
The United States is studying whether it can legally challenge Chinese Internet restrictions, a top U.S. trade official said recently.
BLOW TO INNOVATION?
Analysts said if Google withdrew from China, the biggest losers would be its millions of Internet users.
With two research and development centres in China, hundreds of sales staff and engineers working on the Google Android platform and other initiatives, analysts said all may come to a halt if Google decides on a pull out.
"This is not a good thing for Chinese netizens because Google has been the leader in innovation in the search engine field," said Cao Junbo, chief analyst with iResearch, a Beijing-based research firm specializing in technology matters.
Currently, Google offers Google Maps, Gmail and free music downloads to Chinese users, all of which could be in jeopardy if the company leaves.
Even Google's mobile platform Android is not safe, as Google products such as search which are embedded into the platform will stop working if Google withdraws, making the platform less desirable to consumers, analysts said.
Google's withdrawal will open up China's $1 billion search market to more local firms, Cao said.
The biggest beneficiary will be domestic search leader Baidu Inc, which already has a sophisticated search advertising display system and a robust sales and customer support team.
Others such as Tencent Holdings, China's most valuable Internet company, may also benefit as the firm runs the country's largest instant messaging platform that it could tap into to expand its search network.
(Additional reporting by Stefanie McIntyre in Hong Kong)
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Mar 22, 2010 4:49am EDT
Seriously… does anyone believe Google will pull out?? Google is a corporation, therefore the only thing it cares about are its quarterly profits. There’s no way they are pulling out. If they pull out, they would just be digging their own grave. Someone else will take over the internet in sometime.
This is just a stunt to try to “own” China. It just happens that they ran into a even bigger (and more evil) corporation than them.
charluca
Report As Abusive
Mar 22, 2010 4:59am EDT
This article is not very objectively, it always quote extreme users’ point. you know what, a large amount of Chinese users think Google is a wonderful site, they set google as homepage, and use google a lot of times a day, they are sorry about the google’s pulling out. I read some articles on this website, and found that the author always use strong words and qoute extreme saying, then caused a big argument, I think it’s not fair.
ReallyBright
Report As Abusive
Mar 22, 2010 5:12am EDT
@ReallyBright
You r not that bright, as Baidu owns 73% of the market,where did u get the so called data that ‘ a large amount of Chinese users think Google is a wonderful site’?
I feel sry for google, but the move is as stupid as it could possibly be. There are always new substitute, but there arenot always new market.
LOL
Report As Abusive
Mar 22, 2010 5:45am EDT
This is definitely not representative of all Chinese.
While a lot more informal, there’s plenty of commentary from Chinese netizens to suggest that they do support Google: as shown here on Chinasmack. I quote: “I definitely support Google, definitely do not lower your head [bow, give in] to the Celestial Kingdom [Chinese government].” http://www.chinasmack.com/stories/google-threatens-leaving-china-chinese-reactions/
A lot of Chinese companies I know also use Gmail extensively for their company email too.
egreenaway
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Mar 22, 2010 6:03am EDT
I hope that Google will go one step further and prevent access from any IP address based in china from their services. I maintain a network for a small company. I unfortunately spend a substantial amount of time dealing with and trying to prevent constant cyber attacks from IP’s based in china. I am continuously adding IP addresses to my firewall rules to block China based IP’s. So far I have just over 1300 IP’s on that list; however, I will admit there are SEVEN ip addresses that are not from China.
Google is just happens to the first to take a stand against China. I for one certainly hope they accomplish something.
DingleBob
Report As Abusive
Mar 22, 2010 6:45am EDT
Google won’t pull out because it doesn’t make any sense from a business perspective to do so.
As far as blocking IP’s from chinese companies accessing Google servers outside of China they do not have to pull out of China to do that!
IdiotSavant
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Mar 22, 2010 7:13am EDT
China will be a democracy in fifteen years
Story_Burn
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Mar 22, 2010 7:32am EDT
Ummm… Asian’s shrug their shoulders at everything, earthquakes, tsunamis, and corruption. The main there here is saving face. 1,000,000 people can die on your watch and it’s not your fault as log as you look good.
Good for Google!
Now the question is… will Rueters give the the Chinese my name and IP to the Chinese if they ask for it?
AlexBkk
Report As Abusive
Mar 22, 2010 8:05am EDT
Yawn. China and America disagree. Why don’t both sides surprise everyone and actually *AGREE* on something. I mean, wouldn’t it be nice if our global leadership were capable of doing something besides taking offense and pointing fingers?
How nice would it be if Google stopped trying to portray China as the “Evil Empire”? You’d think the American peolpe would be wise to this political tactic by now. And what if China, for their part, eased up on the censorship a bit. Surely their government is not so fragile that they can’t withstand any degree of free press?
Nah, it’s easier to point fingers and call names like children. Let’s just keep doing that.
Raskolnikov
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