Google Watching, Eclipsed in China
Last week, in Google to China, Lego my Eggo!, we reported on a story that continues to grow at a furious pace. To catch up, read more about it here. To recap in short, Google announced last week they had detected a targeted attack on their corporate infrastructure originating from China; and in response, Google basically said they would leave China if they were forced to continue to censor their search results in China.
For a large company to say they are going to leave China is a big story because, quite simply, China is becoming the largest market in the world, and is quickly turning the corner to becoming a more consumerist market. 1) “China … has the world’s most-populous Internet market, with more than 384 million people online, bigger than the entire U.S. population”(*1) Wow! Furthermore, 2) “China has the world’s most-populous mobile phone market, with more than 700 million accounts”(*1). Go go Gadget WOW balloons! … In other words, there is a fortune to be made in China for the companies that can figure out how to navigate the social and economic landscapes in place.
Google to China, “Oh, well call me on your Google Phone … psych!”
Today, Google was to launch its’ new Nexus One phone (aka ‘the Google Phone’) in China. China would seem to be essential to their worldwide market strategy for this product. However, following suit with last week’s declaration, the launch is ‘postponed’ … preventing Google from penetrating a 700 million strong mobile phone market. Yeah, these stakes are high!
China to Google, “No.”
Until today, China has not openly made a direct, public comment to Google regarding this entire situation. However, at a regular news briefing today, a Foreign Ministry spokesman for China said, “Foreign enterprises in China need to adhere to China’s laws and regulations, respect the interests of the general public and cultural traditions and shoulder corresponding responsibilities. Google is no exception”(*1).
You say goodbye, I say hello, … hello hello?
And, so it continues, both parties seemingly backed into a corner.
Just as I asked in the last article, Doesn’t China need Google? Doesn’t Google need China?
And, that is what makes this story so interesting. The stakes appear to be so enormously high. And even though people support their stance on human rights, with such an enormous market, multinational, corporate general consensus seems to be, “can Google seriously consider leaving? If so, more room for us! Don’t let the door hit you on the way out.”
to be continued …
Sources:
1.Google halts mobile launch in China, Globe and Mail, Jan.19, 2010