Can Google Live Without China?

Op-eds in prominent newspapers around the worldIt is very momentous to acknowledge that China's
are discussing profusely the latest decision by Googleeconomic practices are far from fair and its
to disengage from China in a move that epitomizessocio-political system may at times be antithetical to
the search engine's level of camaraderie withparadigms experienced in other parts of the world.
communist censors.That China is not a democracy is commonplace
While few viewpoints offer a holistic examination ofrhetoric, yet many, if not all, Fortune 100 companies
a complex issue that goes beyond the businessare keen to put basic tenets about free speech into
sphere, the majority applaud Google's shift asoblivion and open a Chinese subsidiary.
salutary to enhancing democracy in the AsianGeostrategic factors at the macro-economic level are
country.those that Google should pay thorough attention to.
The query nowadays in the western hemisphere isThe firm is a leader in its industry and possesses
whether China can live without Google.reliable friends within the Obama administration -
Many respond by the negative, citing, among others,Andrew McLaughlin, its former head of global public
the infancy of the country's technology infrastructurepolicy, is currently the Deputy U.S. Chief Technology
and its limited number of qualified engineers; someOfficer in the Executive Office of the President. Yet,
even posit metaphorically that Beijing will be "in thea company by itself cannot represent a major
darkness" after such exit.strategic player in the much larger and complex
Truth be told, China needs Google far less than thecontinuum of US - China relations.
opposite. Hence, to the inverse question - can GooglePoliticians are very economical with the truth when it
live without China? - the reasonable answer becomescomes to China. While they occasionally resort to
yes.rhetorical dissent vis-a-vis Beijing's transgressions on
Strategically, there is a superfluity of argumentsdemocracy and issues relating to free speech, they
attesting that the Mountain View, California-basedall keep legendarily mum when it comes to coupling
technology mammoth is following the wrong path inbusiness with ethics.
handling its Chinese conundrum. Some of theseThey shouldn't be necessarily blamed because there's
arguments are specifically endogenous to the firm,a variety of sibylline elements that make up
whereas others are more varied in nature and closelytransnational relations, and bi- or multi-lateral issues
inherent to the macro-environment in which the firmare not always simplistic with crystal clear solutions.
evolves.If Google pulls out of the mainland, it stands to lose
Google does not divulge the size nor the profitabilitybillions of dollars in core revenues and collateral
of its China business but it can be inferred, from thebusiness. It will lose its dominance in the regional
country ca. 400 million internet users, that Google.cn -search business and such economic void will attract
its local portal - contributes a hefty part of theother rivals, which in the end will cripple the firm's
overall bottom line.global market share.
Gauging the firm's scope of business in Mao's republicThis doom scenario is far from a Hollywood sci-fi
implies factoring not only core search revenues butepisode. If Google exits, locals (such as Baidu) and
also the ancillary business derived from joint-venturesmajor rivals like Microsoft's Bing and Yahoo will
in Asia and Google's own commercial undertakings.doubtless grab the manna. Alternatively, new
The firm cannot ignore the potential cash-cow thatentrants may easily imitate the firm's search model
Chinese internet users represent and the competitiveand take advantage of local authorities' reprimand and
pre-eminence that a local presence can proffer. Thedevelop their business.
recent announcement from Google to move its localThere is a long list of Western multinationals
servers from the mainland to Hong Kong and end itsoperating in the mainland despite repeated protests
censorship of searches does a disservice to the firm'sfrom human rights activists. Think McDonald's,
core business strategy because Google needs to beWal-Mart, Carrefour, Citibank, etc.
in China to win in the Chinese market, irrespective ofCollateral losses for Google are already reflecting
the notorious practices of the nation's economicChina's angry reaction after the search engine made
climate.its announcement; news media reported so far that
Therefore, Ed Burnette is accurate in reiterating thisChinese mobile phone companies will drop Google or
viewpoint.Android, its new mobile operating system.