Google in China

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1. Why did Google issue the statement of January 12?

1). The direct reason was Google detected highly sophisticated attacks from China on its computer systems, which tried to access email accounts of Chinese human rights activists.
2). The real reason was Chinese government’s censorship regulation against to the core principles in Google. Since both of them insisted with their own principles and cannot cp

2. Can Google take comfort from the reactions of stakeholders so far?

Google’s way of announcement is very open and beneficial for the stakeholders as they get to know about the company’s future plans in advance and they get enough time to manipulate and manage their plans and decisions. It is a very bold and right strategy for getting stakeholders trust and loyalty for the company.

After publishing the statement, there are definitely supportive reactions as well as different opinions. Although this action would earn some ethic respect from the stakeholders, and get the public attention, giving up such a huge potential market would have negative impact in short-term period. It can be reflected by the stock price of Google during Jan. 2010.

However, based on the long-term strategy, persisting in their own core principle which is accepted widely even in China and being a company not just pursuing the profit but also pursuing the society benefit, will win the trust of its employees and even more users. That is the most important to a company. In reality, Google will not actually lose the market and users in China. 3. Do you expect Google to exit China?

Yes. I think Google should exit China as they are having lots of problems to make a reasonable profit from there. Although the Chinese market was huge and increasing, the competition in China is tight and unfair. 1) The...
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