weekend commentary - REAL reason that Google is 'pulling out' of China
from
(snip)"Much has been made of Google’s willingness to sacrifice the lucrative Chinese market, but just because the magician’s disappeared from the box, it doesn’t necessarily mean he’s left the stage. Analyst Youssef Squali at Jefferies & Co has estimated that Google earned between $250 million and $300 million from China last year, representing between 1% and 2% of its total revenues.
Before launching Google.cn, the search giant had carved out a 13% share of the market, which lifted to around 20% when Google moved servers onshore. Experts suggest it will fall back to around 13% over the coming years. These figures aren’t great, but Google won’t be opening any arteries, because like any good magician, there’s still a rabbit to be pulled from the hat: Android.
Mobile search is a big business in China. Official government figures reveal the country has 384 million internet users, and 181 million of them access the web through their phones. Overall, it’s estimated that the middle kingdom has 750 million mobile subscribers and unlike the desktop search market, which is confined to China’s wealthy middle class and internet cafes, mobiles and browsing packages are heavily discounted. This is a vast market that’s only going to grow, and Google’s feeding it Android – a platform that offers a direct line to its online services, advertising and search.
Google’s presented its China stance as a brave gamble. Rubbish. It’s thrown down a pair of twos knowing it’s got three kings up its sleeve. In return, it gets a wave of public goodwill to shore up its crumbling “don’t be evil” façade, and the gratitude of the US Government.
It’s the latter that’s the big win here. Google’s long-term plans are dependent on infrastructure – from laying fibre and setting up DNS servers, to buying and selling power – and this strategy requires the US Government’s goodwill. A friendly ear wouldn’t hurt when it comes to quelling those antitrust and privacy murmurs that are cropping up more and more frequently, either.
Don’t forget, Google’s proposed deal with Yahoo was killed stone dead by the US Government in November 2008, while rumours continue to swirl that the FTC will take a long hard look at its AdMob acquisition. If any further evidence was required that Google’s keen to cosy up to the Government, it’s worth noting that the search giant publicly asked the NSA to investigate the attacks on its network and shore up defences in the wake of the December hacks.
And this isn’t a one-sided relationship. Google’s a convenient lightning rod for the Obama administration, which looks likely to label China a “currency manipulator” in a Treasury Department report on 15 April, allowing it to slap additional tariffs on imports from the country. Such an action is likely to start a trade war between the two countries, driving up prices of goods in the US – an action that will prove deeply unpopular with most Americans, unless, of course, they’re already on side.
There’s the trick, and it’s the neatest piece of sleight of hand you’ll ever see. This is a debate about censorship that’s got absolutely nothing to do with censorship. It’s about money, PR, prestige and politics. If it was about censorship, I wouldn’t have tackled it in the first place, because, you see, talking about censorship on the internet really is a doomed endeavour – thank heavens Google isn’t actually trying it."(snip)
Re: weekend commentary - REAL reason that Google is 'pulling out' of China
Google and the NSA/CIA are well acquainted. Why do you think the Chinese are so interested in it? Perhaps this opinion is correct, but in other corners of the government it is certainly being frowned upon.