via BBC News
Starting in 2006, as a part of being allowed to operate in China, Google had to agree to censor certain search results, mainly to do with free speech issues in China. While this generally goes against Google’s credo of ‘do no evil’, and having an open internet, having at least a presence in China still seemed like the best course of action. From their blog post yesterday, “the benefits of increased access to information for people in China and a more open Internet outweighed our discomfort in agreeing [at the time] to censor some results”. At the time, they let everyone know they would monitor for any further restrictions on their services, and reevaluate their presence at such a point. That point in time has certainly come, and perhaps for some unexpected reasons.
Late in the work day yesterday, Google announced on their blog, “In mid-December, we detected a highly sophisticated and targeted attack on our corporate infrastructure originating from China that resulted in the theft of intellectual property from Google“. They go on to say, “this attack was not just on Google. As part of our investigation we have discovered that at least twenty other large companies from a wide range of businesses–including the Internet, finance, technology, media and chemical sectors–have been similarly targeted”. So, we are not talking about an isolated incident per say then. And, what exactly were the Chinese after? According to Google, “we have evidence to suggest that a primary goal of the attackers was accessing the Gmail accounts of Chinese human rights activists” … as well as people associated with advocacy of free speech in China.
So, yeah, that’s kinda a big deal, … but what now?
Well, in their statement, Google stated they will, a) “review the feasibility of our business operations in China”, b) “are no longer willing to continue censoring [their] results on Google.cn“, c) “will be discussing with the Chinese government the basis on which we could operate an unfiltered search engine within the law” and … wait for it … “if at all”. Cue the organ sounds of danger and mystery! They said it, Google might pull out of China.
Google no longer going to adhere to China’s censorship restrictions!? Google might pull out of China!? Corporate defiance is exciting(and impressive)!
OMG, wait, everyone put down their cyberhackers. Doesn’t China need Google? Doesn’t Google need China?
China has proven it has no problem with simply shutting companies out of China. For example, it is widely understood that both Facebook and Twitter have been shut out of China for months now. So, if China doesn’t want Google, doesn’t agree with their stance, then it will be as simple as flipping a switch so to speak. But, it appears they have not done that yet.
Yet, Google only accounts for roughly 30% of the Chinese market, and is eclipsed by a search engine called Baidu.com, which apparently has 60% of the market. I guess that means the verb ‘Google’ isn’t in the dictionary there yet? It is not as much the household name in China as it is in many other parts of the world. So, maybe China doesn’t need Google …
… But, then again, maybe Google doesn’t need/want China? They are not used to only having 30% of the market. They have put a lot of effort in to being there, but have not quickly achieved search engine dominance. From a business perspective, however, China is a massive market. In fact, it is now the world’s second biggest market; and, more importantly, it is only just starting to turn the corner to becoming a market of consumers. From a pure numbers standpoint, it is hard to say that it is sound business practice to avoid the world’s largest potential consumer market at a time when they are just starting to realize the benefits of things such as Google.
Lego my Eggo!
So Google has taken a stance apparently. Some praise their heroics. For example, in the picture above, a Chinese man leaves flowers at Google’s headquarters in China. Certainly from a ‘Westerner’ perspective, it is hard to argue with a progressive, positive stance on human rights. Yet, some are disappointed with Google as well. If they leave, does the chance of a more open internet in China leave with them? Social change is extremely slow in China. And, no one said dealing with China was going to be easy.
What do you think happens next? Does China need Google? Does Google need China?
[This story is continued in China to Google, “No.” <> Google to China, “Oh, well call me on your Google Phone … psych!”]
Sources:
‘A new approach to China’, The Official Google Blog, Jan.12, 2010
‘Chinese surprise at Google pull-out threat’, BBC News, Jan.13, 2010
‘Google threat to leave China a rare show of business defiance’, Globe and Mail, Jan.13, 2010