Posts tagged with: Google
China, Publications »
Date: 24 March 2010.
Author: Daniel Michaeli.
The best strategy for dealing with Beijing’s chilly new business climate is not to copy Google’s example
No matter how tense commercial relations between the U.S. and China become, American corporations cannot afford to mimic Google’s (GOOG) mistake and give up huge growth opportunities in the world’s largest market. That’s why business leaders need to adjust their strategies quickly to stem the damage.
First, they must cultivate untapped sources of support within China, beginning with independent executives who also chafe at Beijing’s market-unfriendly policies. Coordinating a message with these leaders would change the narrative, removing the perception that greater economic openness means giving in to foreign pressure.
Some are already willing to join U.S. companies in public support of better Chinese economic policies. On Mar. 24, for instance, Bloomberg reported that Chinese executives including Yang Yuanqing, CEO of Lenovo (LNVGY), have gone public with their support of the currency realignment U.S. exporters need to be more competitive in China.
When the Going Gets Tough…Google Leaves
There was never a chance that the Chinese government would cave to Google’s demand that it end censorship of search results, as I argued when Google first announced its threat to leave China in January:
Gambling for Free Speech, and Losing
Google’s decision yesterday to begin reviewing “the feasibility” of its business operations in China has reverberated around the world, particularly in the high tech sector. Responding to the hacking of its corporate network and the accounts of Chinese human rights activists, Google is threatening to leave the Chinese market entirely, and says it is no longer willing to censor its search results on Google.cn.
What is Google’s strategy here? And what happens next?
Google’s statement reads, to me, like pure frustration and anger, not strategy. Human rights advocates are heartened by this move, which suggests finally that Western countries can stand up to Chinese authorities; but the outcome of this mess is likely to be bad for Google’s corporate interests and detrimental to the goal of developing freedom of speech in China.