Friday 26 March 2010

China's information potential is too delicious to resist. Even for Google


Turns out that Google is now diverting Chinese users' search through Hong Kong is a telling statement of how lucrative the Chinese search industry is and how reluctant the internet giant is to close its business prospects here.
In the middle of January 2010, the internet giant said it was considering pulling its operations out of China after it alleged that it was a victim of a "sophisticated and targeted" cyber attack originating from the country.
At that time Google said on its blog that the cyber attack which targeted information on Chinese human rights activists, resulted in a loss of its intellectual property. And China responded saying foreign internet companies may do business there "according to the law".
However, immediately reacting to the alleged attack, Google threatened to leave Chinese market completely and experts said its competitors including Microsoft and China's local search giant Baidu.com are set to benefit from Google's back-out plan.
Perhaps Google imagined other American technology companies including Microsoft to follow suit but as that did not happen on a mass scale, Google has sought a perfectly legal way of diverting traffic to its servers in Hong Kong.
Its latest plan comes just days after advertisers wanted clarity on Google's business plans in China.
When Google launched in China in 2006, it agreed to abide by China's regulations and to operate a censored site. Besides the company abides by the rules in different countries within the EU too where it operates.
That's why Google's decision seems to be far from being a true stand against Chinese censorship but instead a smart and legal move to hook on to China's vast potential of internet users by adopting a middle ground. It demonstrates Google's aspiration of having its cake and eating it too. An information business decision one can only empathise with.
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On a different note altogether, can't wait to see how Britons reacts to News Corporation's plan of erecting a pay-wall this June on the digital version of UK national daily The Times and sister publication The Sunday Times. Under this move, readers will have to pay £1 for a day's access and £2 for a week's access to Times newspaper online.
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