Could Google's opposition to Chinese government affect its business elsewhere?

Could Google's opposition to Chinese government affect its business elsewhere?

Summary: Googe's opposition to the Chinese government's censorship policies could have consequences outside of China...

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The New York Times reported that Chinese authorities have already contacted Google's Chinese business partners, warning them they must obey the censorship laws.

Google has emerged as a staunch critic of the Chinese government's censorship of the the Internet and an opponent to its laws. This carries great weight in China. Being associated with Google in any way, could be seen as being bad for business inside China.

The Financial Times reported on Saturday, that Google is concerned about a government backlash and retaliation against its Chinese employees.

Google's Chinese employees could face discrimination in the job market. Just a few months ago, Google lost its head of Google China, Kai-Fu Lee departed in September. Maybe he saw the writing on the wall as Google founders, Larry Page and Sergey Brin, grew increasingly concerned about Chinese censorship.

Remebering history...

Google's two months of negotiations with the Chinese government over changing its censorship laws did not go well. On Friday, a senior minister said Google must obey censorship laws.

The Chinese government can't have been happy with a foreign organization trying to threaten it with leaving unless it changed its laws. There is a bad history associated with foreigners forcing changes in Chinese laws. The British are notorious for forcing a law that made opium use legal in China.

Adversorial...

The Chinese government is unlikely to look favorably on Google's non-search operations in China. It's opposition to its laws already marks it as an adversary.

For Western firms, an association with Google could be harmful. In early February, Reuters reported that Google is part of a Disney-led consortium seeking to buy a $100 million stake in Bus Online, a Chinese digital advertising company. Such deals require Chinese government approval. It will be interesting to see if Google's membership of this consortium sinks the deal, or if it is asked to leave.

Would the Chinese government go further in a retaliation against Google, and punish foreign companies for being associated with Google in non-Chinese markets?

With the Chinese Internet market exploding, many foreign firms are trying to build a presence in China. If those corporations fail to win Chinese government approval for their business ventures, they will lose out on sharing in the world's largest and fastest growing Internet market.

Partnerships with Google outside of China, could potentially affect a company's business prospects inside China.

Topics: Government US, Browser, Google, Government, China

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8 comments
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  • I'm done with China. It's Tariff Time Folks.

    Economically, the China trade deficit has exacted its damage on our economy and continues to siphoned off our collective 'net worth'.

    Let's put it this way, economically speaking, we are down on one knee.

    Another year and we will be on the ground prone and quite vulnerable that China could kick us where it hurts.

    Regaining our economic self-sufficiency (that's spelled: Made in America) should be a national mandate or we are destined to become a <a href="http://www.answers.com/topic/debtor-nation">debtor nation</a> for good.
    DTS Linux Advocate
    • I couldn't agree more!

      Trade with China has reached the end of it's usefulness. Can you say,"Hello India, Brazil". I think we should sue in the WTO for the entire trade balance and demand a renegotiation of all outstanding debt [to China] based on unfair trade practices, and simply stop interest payments to all but our allies.
      timtiminhouston
    • But could you afford "Made in America"?

      When you lay down minimum wage, union support, regulation fee, business tax, environmental charges, welfare obligation, cap & trade, universal health care and so on in front of business owners and still demand "Made in America", you simply force them charge an exorbitant high price on the products to make ends meet.

      It's tragic that government establishes all the above garbage only to disable "Made in America".
      LBiege
  • Well soon will have to choose money / business vs ethic and human right

    Everybody is screaming about China this , China that but every corporation and businessman want to have a piece of it like a street hooker wanna have a client.

    At some point what is the goal money at any cost or doing business with careful check and boundaries. to make sure that you dont end up with melamine in the baby milk and candy . poisonous dog food and the rest.

    WE will have as a society to choose with who we deal and how we deal. Or one of the days will have to look and the mirror and ask our self was it worth it.

    But as long as the mighty dollars will reign supreme in the mind and heart of a large % of the population ..... nothing will change .
    Quebec-french
  • RE: Could Google's China policy affect its business elsewhere?

    The Chinese laugh at us, we don't know what they are doing, and they are a force to be reckoned with between now and 2200. They think long term and have all the patience and power they could possibly desire. Who would have imagined the Chinese as America's biggest creditor a hundred years ago. They can easily walk away from Google, replace it and move on, and easily prohibit or influence who does what in their nation.The question is what do the Chinese want and how do they see it? If we judge them from our Western business perspective we may be missing the boat entirely.
    billroberts123
  • RE: Could Google's China policy affect its business elsewhere?

    No Google should leave china and should take alone more company with them. Google also have lot of relationship with other company. China has gone to far bully companies not just Google but even smaller companies. I am chief representative of one of them . I think it time we should teach china some lesson to follow human rights. All that big boom in china is fake . They are big cheater and the world should know . China and Chinese have no moral and the just think about money and politics.
    It like entering a red light area .All of them are pimps and whores . I have so many stories to be tell about this bitchy china. I waiting for the fall of china . All this rise of china is only for this communist bastards. People of this world i ask you unite and fight this EVIL DRAGON Which we are feeding it day by day . They are planing on world domination. Changing this free world in to real HELL. I have studied china for 10 years and i speak fluent Chinese . I speak to them and know what they are think . We should all wake up it trap which created by China . To be the worlds No one super power. Destroying all the world economy.
    Dave Cambrigton
  • I like Google for this

    IMHO, the sort of company that would stand up to China, is the sort of company whose products I am happy to use. Who wouldn't scr*w me over at the first opportunity.

    So yes, it would affect Google worldwide, it would affect them in a positive way if they left China.
    guihombre
  • RE: Could Google's China policy affect its business elsewhere?

    I agree. I'm sick of China and their view that they can do anything they want to do without anyone standing up to them.
    It's about time someone had the balls to not fall into their warped sense of business practices.
    Unfortunately, many more companies will continue to kiss their asses as China apparently has enough money to do as they please.
    qique12569@...