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Terry Sweeney

Google & China: Let Me Get the Door for You

Written by Terry Sweeney
3/17/2010 17 comments
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Anyone else tiring of the encomia and plangent eulogies for Google's expected departure from the Chinese market? To hear today's pundits describe it, the company is no less than Jesus Christ, Mother Teresa, and George Clooney all rolled into one, feeding, clothing, and algorithmically ranking the poor Chinese masses.

If I were a Facebook Group-starting sort of guy, we could commiserate over in the "Beg Google To Stand Tall For Freedom And Not Abandon China" clubhouse. Another time, maybe.

It's a nasty little snarl of politics and PR, but allow me to summarize: Gmail accounts of Chinese activists got hacked; Google blamed Chinese agents and government indifference; then, in what was easily the weirdest non-sequitur of the year, Google connected its future in China to the government dropping its censorship requirements. Throw in a lacquered box, a red lantern, and a fetching concubine, and you've got the makings of a possibly credible geo-political drama. The working title could be something like "Sputtering Search Exec, Laughing Chinese Bureaucrat." (We're gonna need some big marquees. And maybe some cool, new martial-arts moves.)

The Associated Press calls a China without Google a "lose-lose scenario." That remains to be seen, but let's hasten to add that Google will by far be the bigger loser. It's been unable to turn its sanctimony into a wedge with which to win more operating freedom (and market share) in a country that publicly and unabashedly censors.

According to hand-wringing AP, a Google-less China means no more maps on mobile phones, the end of a free music service that has helped to fight piracy, and the loss of Google's sterling example of amazing excellence to inspire third-rate Chinese Websites to improve. That's unfortunate, at worst. But tragic, horrible, and life-rending? C'mon, folks.

Whether it stays or goes, the fact is, Google needs China more than China needs Google (ThinkerNetter Robert J. Hansen has a slightly different take). And the PR campaign organized by Eric Schmidt, Sergey Brin, and David Drummond has sought to reverse the logic in that sour truth.

Maybe 50 years from now, China will be in a position where it will have to beg Google to stay. Yes, some entity -- any entity -- operating in China and pressing for more openness and freedom is a good thing. That misses the point and threatens to push the conversation off-topic. Any debate over who loves freedom more almost always leads to some extreme lower back pain.

Google has done a remarkable job of managing this tempest in a way that it can exit China with a shrug and a smug, "Well, we tried." The search giant got Hillary Clinton to get upset for them. And Congress. Who says those campaign contributions weren't money well spent?

When Motorola made its initial investments in China almost 25 years ago, then-chairman Robert Galvin told investors, "This will either be an extremely good investment in the future, or we will have ourselves one helluva write-off."

Google rolled the dice when it decided it was a good idea to do business with a regime that has always insisted on its own rules. Google accepted the sizeable upfront risks. Now things look as if it may have itself one helluva writeoff.

— Terry Sweeney, Editor in Chief, Internet Evolution

This blog is part of Internet Evolution's Security Clan, which examines the future of Internet security and the changing nature of risks and vulnerabilities. To join the Security Clan, register here.

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Terry Sweeney
IQ Crew
Friday March 19, 2010 2:14:45 PM
no ratings

I think institutional investors and Google shareholders may care about the company abandoning the single largest search market in the world, despite the fact they've only been able to carve out only about 30 percent of the market against Chinese search leader Baidu. But I seriously doubt Google leaving China will have any lasting effect on its share price.

Terry Sweeney
IQ Crew
Friday March 19, 2010 2:10:12 PM
no ratings

Agreed, Chris... this wearing your corporate benevolence and good works on your sleeve, while possibly good PR, can also backfire and just make your company look like a pious doof. Righteousness can be off-putting whether it's from individuals or corporations.

JoeFoster
Rank: Web master
Friday March 19, 2010 12:32:30 PM
no ratings

China much more than China needs that god-awful company.

And as a second point, or an aside, whichever, my question is simply:

Does anyone really care, besides those who own stock in Google (NASDAQ: GOOG), what happens to search in the most populous country, besides stakeholders and Google itself?

Seems to me that unless someone got into the stock when it went on the market, which ignored most of the rules of the game by the way with the Dutch Auction, is losing money pretty quickly. Could that really be the reason anyone cares, or doesn't gives a flying damn, about the company that says 'first do no evil' and then pretty much ignores that statement.

Just wondering folks.

jj

 

 

Chris Poley
Thinkernetter
Thursday March 18, 2010 7:47:37 AM
no ratings

Google get over yourself, you're a friggin search engine, don't try to be the voice of freedom....its way to costly to your shareholders.

As a publically traded company, (NASDAQ:GOOG) the first rule of order is to obey the corporate governance- enhance the stakeholder’s value.  Nowhere do the words "save the world" appear in the contract.

 

 

Terry Sweeney
IQ Crew
Thursday March 18, 2010 2:47:39 AM
no ratings

I believe we're on the same page, M. Hulot. A little context and perspective is always helpful, not to mention a good strong dose of fresh air... away from the computer.

Terry Sweeney
IQ Crew
Thursday March 18, 2010 2:46:08 AM
no ratings

Gracias, Nicole. I got a little tired of my own whining about all this sanctimony and doubletalk and moaning about poor Google and poor China. Mighty economic engine that it is, Google is not the sine qua non of growth, prosperity, and innovation that some would have us believe. That seems to be a bitter pill for many to swallow.

Terry Sweeney
IQ Crew
Thursday March 18, 2010 2:45:55 AM
no ratings

Gracias, Nicole. I got a little tired of my own whining about all this sanctimony and doubletalk and moaning about poor Google and poor China. Mighty economic engine that it is, Google is not the sine qua non of growth, prosperity, and innovation that some would have us believe. That seems to be a bitter pill for many to swallow.

Terry Sweeney
IQ Crew
Thursday March 18, 2010 2:41:48 AM
no ratings

I don't know the answer to your question about what the withdrawal of search engine company will do to a national or international economy. I think China's economy is sufficiently large and diverisifed to withstand whatever repercussions come from this. As far as other tech companies in China go, I don't see a problem here. Google -- for whatever the real reason -- decided it no longer liked the conditions under which it had to operate. It was not forced out, though the face-saving move would be to cast this that the Chinese left them no choice. Google painted itself into a corner on this one... I honestly don't believe its absence or presence in China will make much of a difference in the overall level of innovation there.   

Terry Sweeney
IQ Crew
Thursday March 18, 2010 2:36:52 AM
no ratings

I understand what you're saying, Mary... I just don't think Google is the magic potion that enables all the dynamics and futures that you do. And even more than before, it just feels like Google has really overplayed its hand here, and China called its bluff.

Terry Sweeney
IQ Crew
Thursday March 18, 2010 2:34:49 AM
no ratings

Agreed, David... it is quite a striking contrast in corporate style. And it's even more amazing how many entities and news organizations and government officials will carry water for Google.

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The ThinkerNet does not reflect the views of TechWeb. The ThinkerNet is an informal means of communication to members and visitors of the Internet Evolution site. Individual authors are chosen by Internet Evolution to blog. Neither Internet Evolution nor TechWeb assume responsibility for comments, claims, or opinions made by authors and ThinkerNet bloggers. They are no substitute for your own research and should not be relied upon for trading or any other purpose.
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