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Google vs. China and the Winner Is.....
Wednesday, January 13, 2010

Unless you have been unplugged in the past day or two, you have no doubt heard of  the battle between Google and the Chinese government as Chinese censorship policy may force Google to shut down Google.cn.  According to reports,
By leaving China, Google would be giving up access to the world’s largest Internet market. Google will make about $600 million of its revenue in China this year, according to Imran Khan, an analyst at JPMorgan Chase & Co. in New York. Analysts predict the company will have sales of $20.4 billion in 2010, according to a Bloomberg survey.
Google released a "censored version" of their search engine and entered China in early 2006, an interesting move at the time considering all of the restrictions and filters on the results shown in that country.  Fast forward and the inevitable has happened as Google does not want to have its result censored any longer.

According to the official blog post from Google,
We launched Google.cn in January 2006 in the belief that the benefits of increased access to information for people in China and a more open Internet outweighed our discomfort in agreeing to censor some results. At the time we made clear that "we will carefully monitor conditions in China, including new laws and other restrictions on our services. If we determine that we are unable to achieve the objectives outlined we will not hesitate to reconsider our approach to China."
There will definitely be some intresting results (no pun intended) as this story countinues to play out.  Looks like the news has helped Baidu's stock price as  jumped by nearly 14% today.

Google's (GOOG) stock meanwhile dropped about .57%. Seems as though early reports suggest that most are on the fence with regards to Google's stance.

Related Resources

Google:  Assessing the Fallout From China Stance - Barrons.com
Google may click away from China -  The Globe and Mail
Google Considering China Pullout in the Wake of Suspected Government Hacking - Search Engine Watch
Google and China: Maybe They Can’t Get Along - Marketing Pilgrim
Google vs. China: Free speech, finances or both? - CNN


posted by Jody @ Wednesday, January 13, 2010  
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