Tuesday, March 23, 2010

Google vs China : Who will be the winner

Google has now decided to stop censoring its search and show uncensored search in China. Following a series of negotiations with Chinese officials who did not allow google to show uncensored searches, Google finally decided to do what it thinks right.

Google runs the risk of getting its services blocked, but its a risk it needs to take. There are various reasons why:

1. Google needs to compete with Baidu which is the market leader in search currently in China. A completely open market, void of censorship is destined to give google the much needed acceleration.

2. Though, google runs the risk of getting its services blocked in China, but this is a very minimal risk. At most it will have to relocate or let-go its 600 employees in China. China will lose more in terms of credibility and 'face-value', not to mention the ire it will earn of the google-china employees.

3. Google's China business contributes very little to its topline, and hence it will not be a bad decision (financiall) to quit China on moral grounds (ethically). Though, in longer run, Google might be relinquishing a BIG market. But there are other avenues to attract Chinese market.

If Google succeeds in continuing to provide uncensored services without any problem, this will be landmark victory for independence of speech/freedom of business in China. Other companies might also get inspired and follow suit.

Time will tell what the Chinese will let them do, and what Google''s follow up strategy will be.

[References]

Read this article on wsj for more

Read more on censorship in china in this NYTimes article.

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