Tuesday, January 12, 2010

Google May Exit China

Google says that its services in China was attacked recently, and the target was Gmail accounts owned by human rights activists. The company doesn't say it's the Chinese government, but points the corporate finger in that direction.

In the extraordinary blog posting (hit the jump below), Google says it is no longer going to censor its web results, something it agreed to do as a condition of being allowed to operate in China. The company acknowledges that it may be unable to do this without violating Chinese law, and that it is prepared to shut down its operations and close its offices if that happens.

This is big, really big. Google's corporate motto is "Don't be evil." China represents a huge market for Google, which can sell gazillions of RMB worth of sponsored ads as the market grows. There's also huge potential for Google's other services such as cell phones and mapping technology. Pulling out will surely cost the company millions of dollars in lost profits, and will permit its hungry competitors, from Yahoo to Baidu, breathing room to grow.

Will the Chinese government care? Will the Chinese people care? Don't bet on it.

Official Google Blog: A new approach to China

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