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Jose Ferreira

Jose Ferreira

Posted: January 18, 2010 06:36 PM

Google's Got the Goods on China

What's Your Reaction:

Google is playing hardball. After last week's ultimatum, the search giant appears to have left itself no way out: either China allows Google to operate uncensored or Google leaves China. Why would Google posture like that? Surely it's not serious about leaving China. What would be the point? Why would a company like Google make feeble idealistic gestures that will hurt its business and ultimately help no one else?

There must be a missing fact that makes this puzzle come together. My guess is that Google can prove that the Chinese government was behind the recent cyber-attack. There probably isn't any real proof yet, but all Google needs is enough proof to sentence China in the court of public opinion.

Google's real threat to China is not that it will leave the country. It's that it will embarrass China and damage its national reputation as a place to do business. On the other hand, if Google can convince China to end or reduce the censorship restrictions on its search engine, then Google will have a significant competitive advantage over market leader Baidu.

The way I figure it, Google believes it can pressure to China to loosen, though not lift, restrictions on Google's searches while keeping them firm on Baidu's - presumably China can be counted on do the minimum loosening possible. Such asymmetric loosening would be a significant competitive advantage for Google in the world's biggest Internet market (and one where Google is lagging behind Baidu by a margin of 2:1).

This is the only sense I can make of Google's actions. Of course, perhaps they're just being stupid...

 

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Google is playing hardball. After last week's ultimatum, the search giant appears to have left itself no way out: either China allows Google to operate uncensored or Google leaves China. Why would G...
Google is playing hardball. After last week's ultimatum, the search giant appears to have left itself no way out: either China allows Google to operate uncensored or Google leaves China. Why would G...
 
 
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04:34 PM on 01/19/2010
a3w. Can you lay out the evidences against the Chinese government in this hacking case besides accusing the usual supsect?
01:07 PM on 01/20/2010
I'm simply repeating what was reported. I don't have evidence apart from how this story related in the news media. Isn't that what we're commenting on--the article?
12:44 PM on 01/19/2010
No offense to my Chinese friends - but Google's Done Good.

Google has challenged the smug corporate assumption that business alone will liberate. It will not.

Fellow traveling businesses will allow corrupt, inefficient and doltish coteries, cliques and regimes to bask from the reflected glory of hard won wars for equity, freedom, enlightenment and excellence that have been fought in societies that have produced such new, thoughtful responses.

Fellow traveling businesses, that squander their freedom and slip into cozy relationships with the authorities betray the " poorest of the poor and the weakest of the weak" in the case of even democracies these are all those without a vote - children, the environment and the future.

Such businesses produce cynicism, and conformism, not innovation and wonder.

Such businesses die slow, inglorious deaths.

Google's decisions - first to engage and then draw the lakshmanrekha - the line in the sand - are both that will inspire life conscious people.
12:42 PM on 01/19/2010
Since the past two decades, the Government of India, the Government of my own state, Andhra Pradesh, the Andhra Pradesh High Court , the Chief Information Commissioner and State Information Commissioner have combined to impress on me that what works in India is what I have called the "patronage paradigm" - the paradigm of shoddiness, irresponsibility, cronyism and corruption - and that ideas of the rule of law and democratic processes are merely spectacles to lull the gullible.

I have been denied the recognition that were commended to me, I have been unable to earn a decent living, the office of the Governor of Andhra Pradesh incited my neighbours to cut off my water supply, the Indian editorial class published government "spin", the information commissions in the state and at the centre denied me my right to information on spurious, brazenly illegal grounds, punished me for daring to seek it, the high court denied me my right to competent counsel and punished me for complaining.

Even as we speak, Dr Manmohan Singh's office, "Daredevil" Pratibha Patil's Rashtrapati Bhavan, Chief Information Commissioner Wajahat Habibullah, State Information Commissioner CD Arha are all in an obvious conspiracy to deny me justice.
10:43 AM on 01/19/2010
The event signifies a resounding defeat of Google in China, most other American internet companies. By Google's logics, it should leave every country that censor. This will make 60 countries in the world ineligible for google service, including France, Australia and South Korea. Google agreed to censor in China 4 years ago, and continue to operate as such. What event leads to the sudden change of heart? Hacking? Give me a break. Hacking occurs daily in every country, US is probably one of the most. Google should shut its business in United States as well. I don't see why Chinese government will give an unfair advantage to Google over Baidu in censorship. If Chinese policy is dictated by opinion polls in North America, China will not develop as well as today. The image of bowing to foreigners will signal the beginning of the end for a ruler in China. Either Google will eat its word of quiting China, or it will be shut out, plain and simple.
11:51 AM on 01/19/2010
True, hacking is a ubiquitous problem. The crux here (as reported in this article and others) is that the Chinese gov't may have been behind this specific hack. To me, and apparently to Google, that's a pretty big deal.

Your grammar and spelling indicate that you may not be a native english-speaker. Are you, perhaps, commenting from China?
06:11 AM on 01/19/2010
Good for Google! Freedom begins with free communication.
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Thomas Reissmann
Yes we can, but...
03:04 AM on 01/19/2010
Google only has a 30% market share in China and is not really making a lot of money there, this whole thing is a marketing exercise to bow out of the Chinese market gracefully.
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FreedomBeforeSecurity
Primary: The only time we truly control our future
09:45 PM on 01/18/2010
"This is the only sense I can make of Google's actions. Of course, perhaps they're just being stupid..."

Or maybe Google realizes that they cannot ensure the security of their intellectual property, as well as protect the privacy of their users in China. Users that if caught, will face SEVERE retribution from the Chinese government.
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Pierce Nichols
07:17 PM on 01/18/2010
Baidu.com is arguably Google's most dangerous rival... and Google just made them (and, incidentally, anyone else willing to enter the search business in China on the government's terms) look like Beijing's poodle. That effectively confines Baidu.com to China for the foreseeable future, and that's a big fat win for Google. I think they've either got (or soon will have) solid evidence that the hack was a government operation.