By now, most people have heard that Google is disengaging from its search business in China, one of the largest markets in the world. The reasons for this action are, first, that China is requiring Google to censor web search for clients in the country. Secondly, Google is stewing about cyberattacks on its software originating in China that may have had government sponsorship. These points, plus others, were detailed in the recent news story focusing about Sergey Brinn, one of the founders of the company (see: Brin Drove Google to Pull Back in China; subscription required).Below is an excerpt from the story:
Google Inc. co-founder Sergey Brin pushed the Internet giant to take the risky step of abandoning its China-based search engine as that country's efforts to censor the Web and suppress dissidents smacked of the "totalitarianism" of his youth in the Soviet Union....On Jan. 12, Google said it would stop self-censoring its search engine in China, citing a major cyberattack that appeared to target the email of human rights activists. On Monday, Google began routing mainland Chinese users of its search engine to a site in Hong Kong that the company isn't censoring....The move appears to have left Google's China business in jeopardy. On Wednesday, China Unicom Ltd., the country's No. 2 mobile-phone operator, said it wouldn't install Google's search functions into new handsets given its decision to stop censoring. Google employees in China are contemplating defecting to rivals such as Microsoft Corp., according to recruiters....Mitch Kapor, a Silicon Valley venture capitalist, said Google's moral stand made sense long term, because China will eventually get more open....Whether others will follow Google remains unclear....Mr. Brin sees Google's China stance as a signal to other countries....The 36-year-old co-founder said he was moved by growing evidence in China of repressive behavior reminiscent of what he remembered from the Soviet Union.
Here are some my personal reactions to this truly astonishing event:
- This is a prime example of a global corporation functioning as a kind of super-state, placing its short-term profits at risk by drawing a line in the sand for a totalitarian regime.The Chinese technocrats must be shaking their heads in bewilderment. No world government of late has shown such resolve.
- In taking this action, Google's has displayed more cohones than one might expect from even a powerful sovereign state and particularly from the United States. Veteran diplomats around the world must be hyperventilating at the hubris of a company, even one with a market cap of some $180B.
- Unbelievably, Brin, the co-founder, states publicly for the record (see above) that Google's response to China's bullying can be attributed, in part, to his personal experience living in totalitarian state. Again, a burst of honesty that must be making diplomats cringe.
- In my opinion, Brin and Google have a deeper understanding of the true value of information in today's world, most particularly in China, than most governmental officials. I believe that, in the long run, China will soften its stand toward Google and hand the company both a moral and financial victory. To do otherwise will risk an upheaval of its growing educated class.
- I reject the idea that this initiative by Google is motivated primarily by ethical and moralistic goals. People often mockingly refer to the company's code of conduct: Don't be evil. Rather, I think that Brin and other Google executive believe that their action vis-a-vis China will be good for their business in the long-run. Such long-term thinking has gotten Google where it is today and the leaders of the company are still thinking along these same lines.
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