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Google vs China thread

you don't know things happenned in China,I live in China,here are many search engines,only the best can survive,as baidu, google ,yahoo ,qihu ,sougou ,sousou ,gougou ,youdao ,kuxun ,aiwen,soushi,biying,and so on,the competition is very sharp
Good...But that is not what I asked. Your evasiveness is indicative that you and your Chinese pals are backed into a corner. Someone brought on an op-ed claiming that there is a link between Google and the CIA, a link that strain the imagination of normal people and is implied that this relationship is evil. I brought on more credible sources that said there is an OPERATIONAL link between the successful Baidu and the PRC government, a link that even Baidu's founder, Robin Li, does not deny. So why is this link between a supposedly private corporate entity and the government 'good'?
 
What a hypocrite, why don't you re-post what you just said in countless other sub-forums. Ask yourself why USA was brought up in a topic regarding Pakistan, why China was brought up when someone bad mouthed India, and so on and so forth.

When taken out of context any one can fill in the blanks as they wish.:disagree:
 
Report: Google denies leaving China - People's Daily Online

True face of a brilliant "TALKER"

Google Inc said yesterday that it is not leaving China, and will try to seek consultations with relevant Chinese departments in the coming days, the Reuters reported.

There are wild speculations that the Internet search giant is considering pulling out of China market over hassles including cyber-attack concerns, it reported.

The Reuters said that Beijing has tried to play down the matter, saying there exist many ways to resolve the dispute, but insisting all foreign companies, Google included, must abide by Chinese laws.

Some analysts said that the confrontational approach with China by Google Inc has damaged its prospects in the world's largest Internet market, regardless of whether it carries out its threat to quit the country.

The Reuters quoted UBS analyst Wang Jinjin as saying that Google's relationship with local advertisers has been damaged as a result of the threat and that they will choose Baidu Inc over the firm.

On Saturday, Yahoo was dragged into the growing row after its Chinese partner Alibaba Group slammed its statements supporting Google.

People's Daily Online :smitten::pakistan::china:
 
Let us see what we have...

By Keith Bradsher And David Barboza

The New York Times
Updated: 01/15/2010 06:22:03 PM MST

Hong Kong » Google is far from alone among Western companies in its growing unhappiness with Chinese government policies, although it is highly unusual in threatening to pull out of the country entirely in protest.

Western companies contend that they face a lengthening list of obstacles to doing business in China, from "buy Chinese" government procurement policies to widespread counterfeiting to growing restrictions on foreign investments.

Some of these obstacles are a result of China's desire to maintain control over internal dissent, manifested through its resolve to shape the Internet to its advantage rather than accept an unrestricted Web. Others stem from China's efforts to become internationally competitive in as many industries as possible.


Google's difficulties and its strong response are indicative of a broader shift in sentiment among multinational executives in China.

"I have never seen the foreign business sentiment as pessimistic as it is right now," said James McGregor, a consultant in Beijing. "There's a sense China is saying, 'We have your technology and your capital -- and now we have control of the market.' "

Google complained last week about attacks on its computers that it contended originated in China and said it was no longer willing to censor its Chinese site's search results. It is not the first company to run afoul of the Chinese Communist Party's fears of social instability and strong desire to keep tabs on dissidents and limit freedom of expression. But it also is not the first to have accepted intrusive controls to gain access to a growing market that includes 338 million Internet users.

China has long restricted the sale of foreign movies, books, music and other media and continues to do so while appealing a World Trade Organization ruling in August that these policies violate China's legally binding commitments to the international free trade system. More recently, China has sought to strengthen its domestic encryption industry -- for which the government has easy access to all the decryption codes -- while withholding the government certification that foreign-owned encryption companies in China need to sell their products to many users.

Joerg Wuttke, the president of the European Union Chamber of Commerce in China, said that no European Union companies had pulled out of China yet. But he said that the encryption dispute would be the most likely cause if any European company withdrew in the near future.

Duncan Clark, the chairman of BDA, a consulting firm in Beijing that advises major telecom and technology companies, said that Google's difficulties were indicative of broader troubles for foreign companies in China.

"There has been a raft of decisions and unpredictability, a kind of unpleasantness about what's happening here," Clark said. "There has been this perceived wisdom that no one can afford not to be in China, but that is being questioned now -- there's kind of an arrogance that's characterizing government policy toward multinationals."

To be sure, doing business in China has never been easy. Foreign companies have long complained of being cheated by joint venture partners who set up parallel businesses on the side or abscond with assets. Many other countries also have policies that favor homegrown companies, although the opportunity for industrialized countries to do so is limited because they operate under tighter World Trade Organization rules than China.

Chinese officials and academics dispute whether government policies are discriminatory toward foreign companies. Hu Yong, an associate professor of journalism and communication at Peking University, said that the government was leery of the rapid expansion of the Internet and mistrustful of private Chinese companies, as well as foreign businesses.

"I think in the information-technology sector, not only foreign companies are under very heavy pressure, but also private domestic companies," he said. "The general trend is that the government wants state-owned companies to occupy major positions in this field."

Other strains between China and the West over business matters have grown out of government policies that shield Chinese companies from international competition. These policies allow companies to grow in a large home market and prepare to export to less-protected markets abroad.

The newest frictions, particularly in the past year, have been over government procurement policy. When China joined the WTO in November 2001, it promised to negotiate as quickly as possible to join the organization's side agreement requiring free trade in government buying. But it has never actually done so, leaving the Chinese government free to use its enormous buying power to steer contracts to Chinese-owned companies.

The National Development and Reform Commission, China's top economic planning agency, ordered national, provincial and local government agencies on June 4 to buy only Chinese-made products as part of the country's nearly $600 billion economic stimulus program; imports were allowed only when no suitable Chinese products were available.

China has also restricted exports of a long list of minerals for which it mines much of the world's supply, from zinc for making galvanized steel to so-called rare earth elements for manufacturing hybrid gasoline-electric cars.

Those restrictions, ranging from steep export tariffs to tonnage quotas and even export bans, have made it cheaper for many manufacturers to locate their factories in China to make sure that they have a plentiful supply of raw materials free from export taxes. In June, the United States and the European Union filed a WTO case challenging China's restrictions on zinc and bauxite exports. The Chinese government has denied wrongdoing.

China's weak protections for patents and trademarks -- and widespread counterfeiting as a result -- have produced large industries that make goods in direct competition with Western competitors, but without comparable spending on research or marketing. Many Western companies have tried to respond by limiting the intellectual property that they transfer to China.

Oded Shenkar, a professor of business management at Ohio State University and author of The Chinese Century , said very few companies would be willing to leave a market as big as China's, and that it might make sense only for a company such as Google whose primacy rested almost entirely on intellectual property.

"The U.S. is the world's greatest innovator and China is the world's greatest imitator," Shenkar said. "Google? What do they have other than intellectual property? If by being in China you're at risk of losing it, maybe you don't want to be there."

But the Chinese market is so large and competitive that many multinationals choose to offer their latest technology for fear of losing market share if they don't.

Volkswagen used dated technology in the cars that it sold here in the 1980s and 1990s, so the Chinese government asked multinational automakers in the mid-1990s which of them would offer the most advanced technology in exchange for the right to enter the market and build a factory in Shanghai. General Motors won the contest and brought its latest robots and automotive designs to China in a joint venture with Shanghai Automotive.
Basically...The PRC is active in trying to establish governmental controls in as many industries as possible, by hook or by crook.
 
Google will shut down if it goes against china , china probbly will but Google CASH .. HARD CASH ... if does not respects GREAT nation of China :flame:
 
Let us see what we have...


Basically...The PRC is active in trying to establish governmental controls in as many industries as possible, by hook or by crook.

Funny, while Mr. elder bash, foreign investments keep pouring in

China, must be some new "Fool Gold Rush"


Jan. 15 (Bloomberg) -- Foreign direct investment in China more than doubled in December from a year earlier as the effects of the financial crisis fade.

Investment rose 103 percent from a year earlier to $12.1 billion, the Ministry of Commerce said at a briefing in Beijing today. That compared with a 32 percent increase in November. Investment fell 2.6 percent in all of 2009 to $90.03 billion, the government said.

Friction between the Chinese government and overseas companies such as Google Inc. and Rio Tinto Group may not be enough to temper investor enthusiasm for the world’s fastest- growing major economy. Rupert Stadler, CEO of Volkswagen AG’s Audi division, said this month that China is the best answer when seeking growth, after the nation supplanted the U.S. as the world’s No.1 auto market in 2009.

“China’s recovery means that the nation’s growth rate will lead the major economies by an even bigger margin,” said Qu Hongbin, chief China economist at HSBC Holdings Plc in Hong Kong. “Thus China’s appeal -- strong economic fundamentals and the world’s most populous consumer market.”

China’s $586 billion stimulus package, record lending last year and tax breaks on consumer spending are bolstering sales and profits. The nation may overtake Japan as the world’s second-largest economy this year, according to International Monetary Fund projections.

China’s growth probably quickened to 10.5 percent in the final quarter of 2009 from 8.9 percent in the previous three months, according to a Bloomberg News survey of economists.

Industry Secrets

Google, the owner of the most-used Internet search engine, said on Jan. 12 that it will end self-censorship in China after attacks on e-mail accounts of human-rights activists and may exit the nation. Separately, Chinese prosecutors are deciding whether employees of Rio Tinto, the world’s third-largest mining company, will go to trial for allegedly stealing secrets related to the steel industry.

“Most foreign investors are still more than eager to secure a share of China’s market, especially amid the financial crisis because that’s where the potential market lies and where the profits are,” said HSBC’s Qu.

VW, which sold 6.29 million cars and sport-utility vehicles worldwide last year, reported a 37 percent surge in China to 1.4 million autos, helping offset declining European deliveries. The German automaker plans to invest more than 4 billion euros ($5.8 billion) in the country by 2011, while Ford Motor Co. is spending $490 million building its third plant in the nation.

China?s Foreign Direct Investment More Than Doubles (Update1) - Bloomberg.com :smitten::pakistan::china:
 
Ouch !! that hurt, so much for Mr. elder's imperial ego!!

Report: Google denies leaving China - People's Daily Online

P.S. "Reality does bites":smitten::pakistan::china:
Here is the indictment as reported by the NY Times...
"The U.S. is the world's greatest innovator and China is the world's greatest imitator," Shenkar said. "Google? What do they have other than intellectual property? If by being in China you're at risk of losing it, maybe you don't want to be there."
Corporate greed is independent up what the PRC government is doing. These companies knows they are dealing with crooks who holds important government positions.

China Needn’t Surpass U.S., Intel CTO Says - Digits - WSJ
November 17, 2009, 11:47 AM ET

China Needn’t Surpass U.S., Intel CTO Says

Rattner says many people underestimate America’s lead in post-graduate education. Intel has found, for example, that the skills of PhDs from Chinese universities that the company has hired do not yet match those of U.S. graduates, he says.
The PRC government is doing what it believe is necessary to lift China out of communist induced poverty and backwardness. The PRC is in the same position as Imperial Japan at the end of the 19th century when Japan began to modernize after admitting to itself the country was backward compared to the supposedly 'uncivilized' gaijins. In a way, it is good that the PRC government is putting China's self interests ahead after quietly admitting the communist experiment was a monumental failure. This issue with Google and the others will serve only highlight the perils of dealing with the PRC.
 
Google likely to exit China next month: report


Google's China operations may be ''officially terminated'' in February, leading the government to block the company's main site, Credit Suisse Group said, without saying who gave it the information.


''Post Google's China shut down, China government is likely to frequently block the Google.com Web site,'' Wallace Cheung and Sharon Jing wrote in a research note dated today. ''Without stable Web site access, Google will likely lose traffic and even revenue'' to Baidu and other search- engine providers.

Google, operator of the world's most-popular Internet search engine, said last week it would no longer censor search results on its Web site in China and is considering shutting down Google.cn and closing its offices there. The company came to the decision after a ``highly sophisticated'' attack on its computer system and evidence that human-rights activists were targeted.

An exit from China would leave Google, whose revenue growth slowed during the US recession, on the sidelines of the world's biggest Internet market. The number of Chinese Web users will grow to 840 million, or 61 per cent of the population, by 2013, according to EMarketer Inc. in New York. That's up from 396 million last year.

Separately, Google said it has begun talks with the Chinese government about the company's plan to stop censoring search results on its Chinese service

Google will hold more talks with Chinese authorities ''in the coming days,'' it said in an e-mailed statement today.

The Google.cn Chinese-language site is still operating in compliance with local regulations, Google said in the statement.

The Chinese service started by Google in 2006 limits search results to comply with the Chinese government's rules to restrict access to information censors deem inappropriate.

Google China spat | Google likely to exit China next month: report
 
Here is the indictment as reported by the NY Times...
Corporate greed is independent up what the PRC government is doing. These companies knows they are dealing with crooks who holds important government positions.

China Needn’t Surpass U.S., Intel CTO Says - Digits - WSJ

The PRC government is doing what it believe is necessary to lift China out of communist induced poverty and backwardness. The PRC is in the same position as Imperial Japan at the end of the 19th century when Japan began to modernize after admitting to itself the country was backward compared to the supposedly 'uncivilized' gaijins. In a way, it is good that the PRC government is putting China's self interests ahead after quietly admitting the communist experiment was a monumental failure. This issue with Google and the others will serve only highlight the perils of dealing with the PRC.

Wow, Mr. elder's last stand come up with a "Blog"

Blogger,Don Clark; is he the same guy with his new book ;

"Loving Someone Gay" ? Interesting HaHaHa

Don Clark's Web Site
:smitten::pakistan::china:
 
Google likely to exit China next month: report


Google's China operations may be ''officially terminated'' in February, leading the government to block the company's main site, Credit Suisse Group said, without saying who gave it the information.


''Post Google's China shut down, China government is likely to frequently block the Google.com Web site,'' Wallace Cheung and Sharon Jing wrote in a research note dated today. ''Without stable Web site access, Google will likely lose traffic and even revenue'' to Baidu and other search- engine providers.

Google, operator of the world's most-popular Internet search engine, said last week it would no longer censor search results on its Web site in China and is considering shutting down Google.cn and closing its offices there. The company came to the decision after a ``highly sophisticated'' attack on its computer system and evidence that human-rights activists were targeted.

An exit from China would leave Google, whose revenue growth slowed during the US recession, on the sidelines of the world's biggest Internet market. The number of Chinese Web users will grow to 840 million, or 61 per cent of the population, by 2013, according to EMarketer Inc. in New York. That's up from 396 million last year.

Separately, Google said it has begun talks with the Chinese government about the company's plan to stop censoring search results on its Chinese service

Google will hold more talks with Chinese authorities ''in the coming days,'' it said in an e-mailed statement today.

The Google.cn Chinese-language site is still operating in compliance with local regulations, Google said in the statement.

The Chinese service started by Google in 2006 limits search results to comply with the Chinese government's rules to restrict access to information censors deem inappropriate.

Google China spat | Google likely to exit China next month: report


The above was old news, its aways a wiser decision to read an

updated version;
Report: Google denies leaving China - People's Daily Online:smitten::pakistan::china:
 
Sergey Brin: Engine driver

Google's bold stand against China owes much to the ideals of the internet giant's co-founder


By Tim Walker

Saturday, 16 January 2010

At the annual meeting of Google shareholders on 8 May 2008, a motion was proposed from the floor which called for an end to the company's activities in China.

When, two years previously, the world's largest internet firm had finally started doing business with the world's most populous country, Google's bosses agreed to impose search filters at the behest of Beijing. Thus search terms such as "Tiananmen Square" or "Dalai Lama" threw up results that were either innocuous or simply censored. Many of Google's idealistic employees, let alone its users, had long been troubled by the compromise. One of the site's founders, Larry Page, voted the motion down, as did the CEO, Eric Schmidt. But Page's co-founder, Sergey Brin, abstained.

Last month, Google discovered that it had been the subject of a sophisticated attack on its computer systems, carried out by hackers in search of private data from more than 30 internet companies. Among the targets were the accounts of Chinese human rights activists; experts claimed the hack could be traced to the Chinese government or its proxies. In response, Google announced on Tuesday that it would stop censoring results on Google.cn – the Chinese version of its search engine – or, should Beijing oppose the move, cease operating in China altogether.

Google-watchers all agree that Brin was behind the decision. "He's always had an emotional tug within him, saying 'we shouldn't be making compromises'," says Ken Auletta, the author of Googled: The End of the World As We Know It. Brin fled the restrictions of the Soviet Union with his Jewish-Russian parents when he was six years old, and the original agreement with the Chinese regime was reportedly the source of disagreements between him and Schmidt. According to The Wall Street Journal, the business-brained CEO maintained that engagement with China, even on Beijing's terms, was the only way to encourage openness; but by the end of 2009, Brin believed that they had tried long and hard enough, and it was time to take a stand. Tuesday's official Google blog entry announcing its "new approach to China" was signed by the firm's chief legal officer. But it is Brin whose conscience has always kept the company cognisant of its famous motto "Don't Be Evil".

Brin was born in Moscow in August 1973, to parents whose ambitions had been thwarted by the state. His father, Michael, was an aspiring astronomer – but the communist party barred Jews from studying physics or astronomy. He became a mathematician, and even then was forced to take more challenging exams than his non-Jewish peers to gain entry to university. He passed, as did Eugenia – later his wife, and Sergey's mother. The family lived with Michael's mother in a small, three-room apartment in Moscow but, after meeting Western delegates at a Warsaw maths conference in 1977, Michael decided his future lay beyond the borders of the USSR.

After applying for an exit visa, Sergey's father was fired from his job, so in the long months before the Brins were at last given permission to leave the country, he taught his young son computer programming. When the family fetched up in Maryland in 1979, he continued to supplement Sergey's schooling with home lessons in maths and Russian. Eleven years later, just before Sergey enrolled on a computer science degree at the University of Maryland, the pair returned to the Soviet Union on an exchange programme for gifted young maths students. Mark Malseed, co-author of The Google Story, writes that one day, during a tour of a sanatorium near Moscow, Sergey "took his father aside, looked him in the eye and said, 'Thank you for taking us all out of Russia.'"

Thanks to a fellowship from the National Science Foundation, Brin began his graduate studies at Stanford University in Palo Alto, California – already home to some of the world's largest tech companies – in 1993. It was there that he met fellow student Larry Page. The pair clashed at first, but their twinned technological preoccupations resulted in a close friendship, a joint research paper – "The Anatomy of a Large-Scale Hypertextual Web Search Engine" – and a new internet search engine, operated on a series of cheap computers that they piled into a college dorm room. A prominent Silicon Valley venture capitalist named Andy Bechtolsheim gave them $100,000 and on 4 September 1998, Google, Inc was officially born, with a mission to make "all the world's information 'universally accessible and useful'."

The site's success was swift and spectacular. When Google floated in 2004 its two young founders became the world's richest thirtysomethings, and last year Brin alone was valued at $12bn. Their wealth allowed them many perks, from roller hockey games in the Google parking lot to private jets parked at an exclusive Nasa airstrip. Google employees have the luxury of spending 20 per cent of their working hours on their own research projects – an initiative that has yielded some of the company's greatest successes, including Gmail. Brin has a ticket to space in 2011, courtesy of a $4.5m investment in a US space tourism company.

But the company also has a philanthropic arm: Brin and Page have invested heavily, for example, in alternative energy research, and in the X Prize Foundation, which is running a competition to create the world's first 100mpg car. "Obviously everyone wants to be successful," Brin told ABC News after he and Page were named the network's "Persons of the Week" in 2004, "but I want to be looked back on as being very innovative, very trusted and ethical and ultimately making a big difference in the world."

Google has turned from a search engine into a tech behemoth whose growth terrifies even Microsoft. As well as creating Gmail, the company acquired AdSense in 2003, a search-based advertising system that is its licence to print money. Android, Google's open source operating system, is now available on a variety of mobile smartphones. In the past 18 months, the company has launched the Chrome internet browser and the web-based Chrome operating system; the new email and instant messaging service Google Wave; and the Nexus One phone, the first item of Google-branded hardware. A Google-branded laptop is expected to follow.

In 2007, Brin married his long-time love Anne Wojcicki, whose sister had provided Google with a garage to operate from in its early days. A fellow entrepreneur, in 2007 Wojcicki used a $3.9m investment from Google to launch the biotech firm 23andMe, which can map DNA and give its clients information on their ancestry and their chances of contracting certain diseases. Brin's own DNA showed that he had a higher than average chance of being diagnosed with Parkinson's disease later in life. His mother Eugenia is already a Parkinson's sufferer, but Brin sees his own risk as positive news: information, after all, trumps ignorance.

Schmidt, a seasoned CEO, was asked by Brin and Page to come on board as Google's boss in 2001. The triumvirate's reputation suggests Schmidt is talkative but professional with journalists, while his playful young partners pipe up only occasionally, letting slip details of the company's operations. It was Schmidt who put the business case for Google to expand into China: with 384 million internet users, it is the world's biggest digital market – of which Google has grasped about 36 per cent since 2006. But Brin and Page spent a year weighing the pros and cons of the decision on what they called their "evil scale" before approving the launch of Google.cn.

The process of removing the Chinese search engine's censorship filters could take the company weeks, and the Chinese government is yet to respond to Google's ultimatum. Could Beijing really countenance a filter-free search engine? Probably not. But it also knows that driving Google from China would be a public relations catastrophe. For Google and Brin, on the other hand, standing up to the regime may cost them some income (and Google China's 700 employees their jobs) but it also acts as proof that Brin and his fellow multibillionaire founder will stick to their guns – and, indeed, to their company motto.

A life in brief

Born: 21 August 1973 in Moscow. His family fled to America in 1979 to escape communist persecution of Jews.

Education: BSc with honours in mathematics and computer science from the University of Maryland. Has a master's degree from Stanford University.

Family: Married to Anne Wojcicki, co-founder of 23andMe, a Google-backed consumer genetics service.

Career: With Larry Page, he developed the project which in 1998 became Google Inc. The search engine now has 200 million hits a day. Its headquarters are in the heart of Silicon Valley and has a motto of "Don't Be Evil". In 2006 Google bought YouTube for $1.65bn (£883m).

He says: "I want to be looked back on as being very innovative, very trusted and ethical and ultimately making a big difference in the world."

They say: "He's always had an emotional tug within him, saying 'we shouldn't be making compromises'." Author Ken Auletta
 
It is a big PR stunt. I don't think google will leave. If it indeed leaves the biggest internet market in the world, then I will short their overpriced stocks with all I have because it will mean that they are too dumb to continue as a business.

Censorship happens in EVERY COUNTRY, including the United States itself. Also on privacy, Google has been handing sensitive, private user information to the FBI, the CIA, and the NSA for years with no problem. Google shakes in its boots when the IRS wants information, too. So why would Google have problem with China in this regard?
 
Google wins praise for its defiance of China over censorship
By Jessica Guynn
January 18, 2010


015da86a9bb1f6bdece142a776df114f.jpg

A message of support for Google was left at a makeshift shrine outside its headquarters in Beijing. Google says it has a 31% market share in China, a distant second behind Baidu Inc. (Nelson Ching / Bloomberg / January 14, 2010

The decision by Google Inc. to stand up to censorship in China is a marked turnaround from just a few years ago, when the Internet giant agreed to gag parts of its search engine to enter the lucrative China market.

Google's threat to bolt from the Asian nation has brought praise from politicians and Silicon Valley business leaders, along with many of the human-rights activists who had condemned the company for going along with China's restrictions on Internet access.

Whether Google's reversal sprang from political idealism or corporate realism, the Mountain View, Calif., company seems intent on winning back the glow of goodwill.

"The China situation was a ticking time bomb for Google's reputation, and they were smart to detonate it on their terms," said crisis management expert Eric Dezenhall.

Google, which had come under harsh criticism after its 2006 move into China, is widely known for its good deeds. It is donating $1 million and technology to relief organizations in Haiti to aid rescue efforts in the aftermath of the deadly magnitude 7.0 earthquake there. During climate talks in Copenhagen, it introduced a free tool to monitor deforestation around the world. Other free services track the spread of flu viruses and energy consumption.

But, as its influence and wealth swelled, so did concerns and unease with the company's rapid growth.

It has been accused of ignoring the rights of authors as it builds a massive digital library and not adequately protecting consumers' privacy with Gmail and other services. It has been derided for crushing old-media companies and disrupting other industries and amassing too much power in the online advertising market. Its actions have drawn attention from regulators in the U.S. and Europe.

The decision to enter China posed the greatest risk to its reputation. With more than 360 million Internet users, one of the largest and fastest-growing Internet audiences in the world, China is tempting for U.S. technology companies.

It's also treacherous. Yahoo Inc. ultimately withdrew from China after it provided information to Chinese authorities that led to the arrest of journalists. Yahoo sold its China business to Alibaba Group in 2005, while acquiring a 39% stake in Alibaba.

That Google would go along with China's restriction on Internet access, dubbed the "Great Firewall of China," drew strong condemnation from human-rights activists. It was also a source of controversy within Google itself.

At the time, the company consulted a cavalcade of China experts and ultimately concluded that the benefits of providing Chinese users with access to its search engine outweighed its concerns over censoring some results. But co-founder Sergey Brin, whose family left the Soviet Union when he was a child, was deeply ambivalent. "Google executives were always of two minds about that decision," said John Battelle, who covered the rise of Google in his 2005 book "The Search."

Google made significant investments in China, opening a research-and-development center, hiring key executives and a staff of hundreds. But Google never experienced the explosive growth in China that it did in the U.S. It struggled to compete with Baidu Inc., claiming a 31% market share, a distant second behind its Chinese competitor. Estimates put Google's China revenue last year at about $300 million, a fraction of its worldwide sales of $22 billion.

At the same time, Google said, it grew increasingly uneasy about the broad crackdown on Internet freedom in China and a series of confrontations with Chinese officials. The final straw, it said, was the hacking of information stored on its servers that targeted human-rights activists.

Google spokesman Gabriel Stricker said that the company had always been clear about monitoring conditions in China and that it would reconsider its "approach" if it were unable to give the Chinese people "increased access to information."

Rep. Chris Smith (R-N.J.) said Google began signaling a change of heart in May 2008 when it said it would support legislation that pushes for more Internet freedom in China.

Google had previously joined other technology companies in opposing the bill.

Smith said David Drummond, Google's senior vice president and chief legal officer, paid him a visit in July, as did another Google representative last week, to express support for the Global Online Freedom Act with some "tweaks."

"This is a very big game changer when the leading search engine in the world all of a sudden has had enough," Smith said.

Google faces an uphill battle in seeking support for its new stance from other U.S. companies and from the U.S. government. The State Department on Friday said it would file a formal complaint with Chinese officials this week and ask for an investigation into the hacking attacks. But U.S. trade policy supports investment in China, Battelle said.

Siva Vaidhyanathan, associate professor of media studies and law at the University of Virginia who is writing a book about the Internet giant, cautioned that Google wasn't so much taking a stand against censorship as a stand against cyber-spying.

"Google deserves tremendous thanks and applause for standing up for the integrity of the Internet. But the free-speech part of this story is merely window dressing. We have to be careful about what we applaud Google for."
 

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