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Mighty Goggle Versus China – The Finale

Posted on : 21-03-2010 | By : stargaterich | In : Internet_Marketing

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So finally it seems that Goggle has enough from Chinese Internet censorship hassle and is indeed going to pull out from the country sometime in April this year. It is such a pity that the company has refuse to comply nor succumb to Mighty China censorship requirements.

I guess the pullout has got nothing to do with the supposedly Chinese government and state sponsored cyberspace hacking into Goggle network as reported by the press. Many believed those press released are just face saving method for Goggle to retreat gracefully from the Chinese search engine market because it is unable to compete with the local search engines in particular Baidu.

Right now it seems that Goggle is portraying itself as the poor little guy bullied by the Chinese but in reality it is the same bully tactic that Goggle treat its publishers. For instance, Goggle suspended the Adwords accounts of thousands without giving any specific reasons. It seems to me like the kettle calling the pot black so to speak.

It is such a shame that Goggle is withdrawing from the huge Chinese online market. Perhaps the company could have just abide by the Chinese cyberspace regulations in terms of Internet censorship notably those on sensitive political issues. After all there is no advantage to Goggle with dabbling with non-profit political issues.

Goggle shouldn’t try to act as if it is the big brother in town, representing the US government so to speak. It is a commercial entity and it should abide by the same rules and regulations that local Chinese search engines adhered to. If the Chinese local search engine such as Baidu able to make tons of profit there is no reason as to why Goggle can’t?

One of the reasons that I can think of is that Goggle fails to understand the Chinese online market requirements, demands and sentiments. The kind of online business models that works for the West may not necessary work for the east such as China. Baidu on the hand being a local firm understands local market wants and needs.

Even though China is still way far off below compare to the Koreans or US in terms of ratio of Internet users to total population, nevertheless a 4% ratio in China represents the entire population of the US! Thus one can see why it is a silly decision to pull out from a market which has the number of Internet users which surpass the entire US population.

Goggle withdrawal from China is a lose lose situation for both the Chinese and the mighty search engine. China is a rising rapidly as the future economic super power and will or has already overtaken Germany as the 2nd largest economy in the world. Other smaller competing international search engine companies would be more than happy to comply with the Chinese Internet censorship and regulations.

It will be difficult for Goggle to re-enter the Chinese Internet market once it has pulled out from past Mainland Chinese cyberspace search engine business deals. Goggle pull out may cause Chinese netizens some inconvenience but it will not have profound long term impact. There are ways for the Chinese surfers to get around Internet censorship such as bypassing firewalls via proxy servers and etc.

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