Google may leave China after cyber attack
After years of kowtowing to the Chinese government on censorship issues, a cyber attack has caused Google to take a very different approach to doing business in the country and one that could result in the company withdrawing from China altogether.
The attack on Google’s server occurred in mid-December and targeted the Gmail accounts of Chinese dissidents as well as Google source code. Google also found evidence that similar attacks occurred at as many as 20 other companies.
In response, Google has announced that it will take, “a new approach to China,” now that it has uncovered these attacks. Part of this approach includes no longer censoring the results on Google’s Chinese search engine and possibly withdrawing from the country entirely.
While Google’s operations in China deliver only a small portion of the company’s revenue, the online advertising marketplace in China is growing at upwards of 40 percent per year. The rapid growth in China makes most companies eager to get into the Chinese market at the ground floor.
It still remains to be seen whether Google will truly stop censoring its search results in China or whether that statement was a negotiating ploy to send a wake-up call to Chinese officials. One official said that he was, “seeking more information on Google’s statement that it could quit China.”
However the outlook for negotiating with the Chinese government could be grim. CLSA Asia-Pacific Markets reports that, “Any China Internet veteran understands the need to work within the system and the Chinese preference for gradual change.”
Google’s threat doesn’t seem to be looking for gradual change and it’s certainly not deferential to the Chinese government’s authority. However most analysts think it’s unlikely that Google will shutter its operations in China due to the massive Internet audience there.
Do you think that Google is just bluffing?
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January 13th, 2010
well if Google does leave, others will simply pick up the slack….
June 29th, 2010
Google’s statement that it could quit China.
November 17th, 2010
Twice this year, China demonstrated its ability to “substantially manipulate” the Internet. Is this really the beginning of a cyber war?
August 21st, 2011
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