Google, market cap $143 billion, vs China, nominal GDP of $4.6 trillion (2008) at current exchange rates. Not exactly an even match up. Yet David is taking on Goliath, not that Google is used to playing the David role.
The American search media company says it might pull out of China after it discovered that in December the Gmail accounts of Chinese human rights activists had been breached, albeit at a low level. In a blog post, Google’s top lawyer, David Drummond said that “we have discovered that at least 20 other large companies from a wide range of businesses–including the Internet, finance, technology, media and chemical sectors–have been similarly targeted.” In a separate post Google, which runs a distant second in the 7 billion yuan ($1 billion) China search market to Baidu’s 60%, added that it was “no longer willing to continue censoring our results” on its Chinese search engine, as the government requires, a practice it had engaged in since 2006 to obtain its Chinese license despite its “Do No Evil” self-image.
Google is not alone among foreign companies in bowing to Beijing’s wishes over matters the government considers sensitive (although it has stopped short of directly accusing the government of being behind the Gmail attack). And it will likely meet with government officials in the near future to discuss whether it will be allowed to offer an uncensored Chinese search engine. It is also embroiled in a copyright dispute over including Chinese authors in its Google Books project. But it may be better positioned than most to take a high-profile stand that will benefit it more in the places where it makes its money, and it may also be gambling on Beijing not wanting to be seen to be drumming one of the world’s best-known multinationals out of the country.
Update: a Foreign Ministry spokeswoman said Wednesday that “China welcomes international Internet companies to conduct business within the country according to law” and that the “government administers the Internet according to law and we have explicit stipulations over what content can be spread on the Internet”.