In an international Internet drama, Google seems closer to ending operations in China after threatening two months ago to pull out of the market. Google’s Chinese-language search engine is the only major foreign competitor in the communist nation.
According to The Wall Street Journal, a person familiar with the situation said Google is likely to take action within weeks. Meanwhile, Chinese government officials told state news outlets that Google’s Chinese site is likely to close, and that if Google exits, those news outlets are required to publish only government accounts.
“Assuming all of these reports are correct, I think Google will stop having an accessible search engine from the Chinese side,” said Greg Sterling, principal analyst at Sterling Market Intelligence. “I think there will be workarounds and ways to get it to the site, assuming they keep the Chinese-language site and the index, which they probably will in anticipation of some future reentry into the market.”
Google’s Strong Stance
According to Analysis International, Google has about 36 percent of China’s search revenue. Chinese competitor Baidu holds 58 percent of the market. At 400 million users, China has the world’s largest Internet population — and it’s growing. China adds an estimated 250,000 new Internet users every day. To Google, it seems a matter of principle.
“If Google found a way to just capitulate to the Chinese censorship requirements after having taken this bold stand against censorship, it would have been a (public relations) problem for Google,” Sterling said. “Google is right to follow through with its threat if China is not going to make some changes, and there has been no indication from day one that China will do anything differently.”
Sterling said Google won’t be compelled to give up the Google.cn name or index. He expects Google to maintain the site, and he expects China to…