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Google pull out of China
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| Lilith |
| quote: | | GOOGLE said yesterday it would no longer co-operate with Chinese censors, even if that meant it could no longer do business in its greatest potential growth market |
SMH review
Whitehouse has its two cents-
| quote: | White House spokesman Robert Gibbs said he would not go into details about the administration's discussions with Google, which announced on Tuesday it would no longer filter search results from China on its web search engine.
"We have had conversations and discussions with them about what they have talked about yesterday," Gibbs told reporters here. "I don't want to get much further afield than that." |
Diplomatically saying fairly much nothing really
I guess its a bit of a win for western companies in some ways they can probably inspire 'no confidence' with regards to investing in China, it opens the possibility of being able to starting taking them on equal terms with future negotiations.
It probably doesn't change much for the average Chinese internet user who will end up defaulting to one of the state owned search engines that already maintain a lot of use over there.
It should also knock the share price of Google down a bit for a little while if you're looking to pick up some :) |
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| Chryz707 |
| Does China really need Google? Dont they have other search engines? |
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| Krypton |
| Google can afford to pull out of China. First off, the Google of China isn't Google, it's Baidu. Google encountered substantial barriers to entry into China, from government regulations, to competition from Baidu. Google is seen as the foreign American search company, and Baidu is the de-facto official Chinese search engine. Google's revenues from China amount to a mere 2% of total revenue for the company. Pulling out of China really is no biggie for Google. Compromising their "don't be evil" philosophy didn't amount to success, so I assume they feel free to take a stand against Chinese censorship since that will only win them praise in the markets where they handily dominate the search market. This is a needle prick in Google's very thick hide. I'm sure the publicity in and of itself, will make up for the lost revenue from the China pullout. |
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| Lira |
| Baidu sucks, and even the Chinese know it. Here's some Chinasmack Goodness with the Chinese reaction to this incident. You can't tell if those are Chinese citizens commenting or just a bot created by Google, but I wouldn't be surprised to find out it's the former. |
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| Krypton |
This is an interesting view...
Dan Slane, chairman of the U.S.-China Economic and Security Review Commission, a federal agency, said he was surprised more companies aren’t standing up with Google.
“It’s all about profit, and I understand where the silence is coming from, but they are missing the long-term picture,” Slane said in an interview. Chinese leaders’ “end game is to extract as much technology out of American companies as they can, transfer that to their own companies and, when they feel those companies have reached a level of technical maturity, show the American companies the door.” |
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| otec |
Sorry for capital letters, but
WHO CARES ABOUT GOOGLE?
As long as they can extract PROFIT from China, they will never ever pull out of it.
ps.
I'm pissed to see all major Western news outlet having this miserable issue on their front page. |
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| Lilith |
| quote: | Originally posted by Krypton
This is an interesting view...
Dan Slane, chairman of the U.S.-China Economic and Security Review Commission, a federal agency, said he was surprised more companies aren’t standing up with Google.
“It’s all about profit, and I understand where the silence is coming from, but they are missing the long-term picture,” Slane said in an interview. Chinese leaders’ “end game is to extract as much technology out of American companies as they can, transfer that to their own companies and, when they feel those companies have reached a level of technical maturity, show the American companies the door.” |
Its a quite well supported view with the amount of industrial espionage going on from the Chinese government and companies that ranges from anywhere between software, submarine bits to missile components over the years they've been busted for.
Essentially the problem started when everyone outsourced quite a lot of industry there without taking into the consideration that the people they where outsourcing it to, have absolutely no shame about reproducing it (ie: motor vehicles) without even having to resort to stealing to engineer it under their own brand.
You should care about Google in so much as they will become one of the more pervasive companies of the 21st century in everyone's lives that isn't currently living in a mud hut somewhere as a subsistence farmer. Big business is notorious for its lack of ethical behaviour and Google itself isn't above being pretty damn slimy (like Microsoft and Apple who will also be one of the more iconic brands for at least the first part of this century)... but long term they aren't so stupid as to back censorship based on politics, because essentially you're writing yourself out of a much broader market and into a corner with very little room to wiggle when it comes to diversifying your business. |
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| jerZ07002 |
| quote: | Originally posted by Krypton
This is an interesting view...
Dan Slane, chairman of the U.S.-China Economic and Security Review Commission, a federal agency, said he was surprised more companies aren’t standing up with Google.
“It’s all about profit, and I understand where the silence is coming from, but they are missing the long-term picture,” Slane said in an interview. Chinese leaders’ “end game is to extract as much technology out of American companies as they can, transfer that to their own companies and, when they feel those companies have reached a level of technical maturity, show the American companies the door.” |
Everyone knows this. It isn't that american companies aren't aware, after all foreign companies can hold a maximum 49% interest in a chinese entity (must form JV with chinese company to operate in china). This means they must transfer their manufacturing and design knowledge to a local company to produce the goods. This is why you see "Made in China" on very low tech products. You don't see many products produced in China that are made with highly valuable and producted industrial processes (e.g., high tech medical devices, etc...). These JVs only produce the low end of the tech spectrum, and only get to steal knowledge you could get from a university textbook. Moreover, companies are reluctant to locate R&D facilities in China for the same reason and the added issue of ty IP protections in China. China is losing out on the high tech front to places like Singapore and India. |
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