Google Blinked First

July 10, 2010

I read a Washington Post piece by Keith B. Richburg that Google’s license to operate in China has been renewed, surprising many—even me.  I thought China would punish Google for all the noise over accusations of being hacked by China and stirring the Western criticism pot about China’s Net Nanny.

“We are very pleased that the government has renewed our ICP license, and we look forward to continuing to provide Web search and local products to our users in China,” Google’s chief legal officer, David Drummond, wrote on the company’s blog.

To get this approval, it appears that Google stopped redirecting mainland Chinese to Google’s site in Hong Kong, where people wouldn’t have to deal with the mainland Net Nanny.

The Wall Street Journal Blogs – Digits reports that this is a step back for Google since the affair lost them market share in China. Digits also explains the reason Google backed away from its threats not to censor its search engine was due to future profits by staying in the largest Internet market in the world.

The message I read at The Technology Liberation Front (cool name) is that it is important for American companies like Google, Microsoft and Yahoo to stay in China. If they leave, their influence on China becoming a politically and economically freer nation would not exist.

The result, future profits defeated idealism.

See Google Recycled

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Lloyd Lofthouse is the award-winning author of the concubine saga, My Splendid Concubine & Our Hart. When you love a Chinese woman, you marry her family and culture too. 

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Walking and Talking Softly the 2nd Time Around

June 11, 2010

You may recall Google shouting in the media about being hacked and then leaving mainland China for Hong Kong after they stopped censoring content as they had agreed when they first went to China. 

Well, although the Chinese have a saying that “Internet multinationals all fail in China, Google was just the last one to go,” China has more people on-line than the population of the US.  The temptation is big. Four hundred million people surfing the Internet is a magnet for Internet businesses.

Sarah Lacy at Tech Crunch writes that China is the only country outside the US that’s given birth to several billion-dollar Internet companies and there’s a lot of growth left. With a market like this in China, US companies are quietly slipping back in to try again. 

The first time around, Yahoo was the only US company to survive, and they did it by buying a 40% share of Alibaba in 2005. Now there are whispers that Alibaba might buy Yahoo.

Remember Who’s Hacking Whom?

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Lloyd Lofthouse is the author of the award winning novels My Splendid Concubine and Our Hart. He also Blogs at The Soulful Veteran and Crazy Normal.

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