July, 2010

Whose loss?

Sandy Wong
Honorary Research Fellow of China Ministry, HKCI

　　A photo drew a lot of attention among Chinese Internet users in March, 2010. It showed the Google logo outside its Beijing headquarters, surrounded by flowers and candles, as in a funeral. The scene is quite symbolic. Google was withdrawing from China and Chinese people blamed it on the government’s restrictions on freedom of information. Google has become a heroic figure - "it is better to die when life is a disgrace," so says a Chinese proverb.

　　In 2006, Google had agreed to censor search results in China when it created a version of its search engine bearing China's Web suffix, ".cn." In return for access to the enormous Chinese market, the company agreed to obey Chinese laws which would require politically and socially sensitive issues, which are available in other countries, to be blocked.

　　In January 2010, Google announced that it would stop cooperating with China's Internet censorship and consider shutting down its operations in the country altogether. This announcement first appeared in a post on the official Google Blog in January 12th, 2010. The company reported a “highly sophisticated and targeted” attack on itself in December which it believed had also affected at least 20 other firms: “These attacks and the surveillance they have uncovered, combined with the attempts over the past year to further limit free speech on the web, have led us to conclude that we should review the feasibility of our business operations in China.” The exact nature and extent of the assaults remained a closely guarded company secret.

　　In fact, China is not the only country where Google has been under increasing pressure to filter information. For instance, Turkey laws prodded Google to help shield Turkey's founders from public ridicule by blocking unflattering videos of them. The company also complies with laws in Germany, France and Poland that force it to exclude information that promotes or supports Nazi causes.

　　However, China is the country most subject to criticism for its Internet restrictions. According to Google’s announcement, one of its attackers’ aims is to pry into the email of human rights activists opposed to the Chinese Communist Party's policies. Although Google has not made any direct and explicit accusations and it is technically difficult to say with certainty where a cyber-attack originated from, the announcement made many suspicious that the Chinese government or its agents had played some role in the hacking attacks. Considering the government’ harsh restrictions on the Internet last year, the suspicions are not groundless.

　　Last year was especially tough in Chinese Internet history. Following the Chinese government’s clampdown, websites and social networking services hosted overseas were blocked – including Twitter, Facebook and YouTube – and many home sites were closed. Although Google was not shut down or blocked, it was criticized by Chinese authorities for supplying “vulgar” content in search results.

　　Google’s announcement has generated some diplomatic tensions. Hillary Clinton stepped into the debate, urging Beijing to respond to Google’s announcement. The US Secretary of State said in a statement: “We have been briefed by Google on these allegations, which raise very serious concerns and questions. We look to the Chinese government for an explanation.” She added: “The ability to operate with confidence in cyberspace is critical in a modern society and economy.”

　　In March, after months of negotiations over whether it can run Google.cn with or without restrictions, Google finally decided that it would move its search engine for China off the mainland but won't shut it down altogether. It will also maintain its other operations in the country. It is obviously an attempt to seek balance between a stance against censorship and a desire to profit from a growing Internet market.

　　Surveys show that the majority of China’s Web users are not much affected by Google’s decision to reroute searches to its Hong Kong-based site. However, it is clear Google’s withdrawal is a big blow to its business. Google has confirmed that it has received a letter purportedly signed by 27 advertising partners in China which complains of a lack of communication on the matter and demands compensation if the company should finally withdraw from China. In the long run, walking away from China, a market with more than 1 billion people, would mean a great loss for Google.

　　It seems that the Chinese government has successfully defended itself in yet another ideological battle. However, did the Chinese government really win? The heart of the matter is not Google walking-away. Even if one Google leaves, other “Googles” would stay or knock on China’s door. The real concern is the world's most populous nation has failed to provide a foothold to the world's top search engine. This definitely represents a setback for China and a serious blow to its internet development. A well-developed civil society needs free flow of information. When Google shuts down its China operation, whose loss?