I’m still catching up on Google’s announcement that Chinese government cyberattacks, aimed ultimately at persecuting dissidents, are causing the company to re-examine whether to continue operating in China. Marc Hedlund had this vivid phrase:
Google effectively has a foreign policy now. They have had nothing much to hold over China and have acted as a supplicant asking for access to their market. Now they’re saying: “F*** that, we have something you want. You have to treat us differently if you want to get it.” Now the ball is in China’s court to decide whether they want the investment of the most powerful tech company in the world in their country, or not. That very dramatically reverses the flow of the conversation they’ve had about China so far …
Nat Torkington has, effectively, a rejoinder:
I guess what I can’t see is the specific negotiation that will happen. Is it going to be, “stop attacking us and we’ll stay”? China won’t admit that, much less guarantee it won’t happen. And if Google goes, Chinese searchers will use Baidu, which is already the largest search engine in China. No big loss, it’s not like Boeing threatening to pull out of Seattle. Is there another deal (“let us into your telco market and we won’t shame you publicly with the hacking evidence we gathered that links your foreign department directly with cyberspying, we’ll just say your machines were gateways for Russians”) that’s the real focus?
I don’t know. Shame is a powerful thing to direct at an aspirant superpower. Google is universal — more than a luxury brand, it’s a company that offers people free access to information and visibly operates with an ethos of beneficence. Keeping Google in China is public-diplomacy consideration as much as it is an economic consideration. The U.S. government is ultimately limited in the amount of leverage it can exercise over China in the human-rights because it needs China’s acquiescence on a variety of other global concerns, from climate change to Iran. (That’s not to say it has no leverage or the correct position for the U.S. is acquiescence in the face of human-rights violations.) Google and other non-state actors will never need China’s vote at the Security Council. (Let’s table for now the problematic nature of giant corporations having this kind of power.)
Now, maybe Torkington is right and Google is bargaining for some greater market share. I like cynical explanations for corporate behavior! It’s not like Chinese persecution of dissidents is new. The difference-maker, according to Google’s statement, is the December cyberattack resulted in ” the theft of intellectual property from Google.” It’s easy enough to see the Chinese dialing that down somewhat, Google remaining in China, and Chinese dissidents being as fucked as they were in November.



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It seems like Google doesn’t have much to lose. They tried to expand in China and it didn’t work. Now they figure they might as well take a parting shot as they withdraw. I don’t think Google expects to change their behavior.
Coming in second place to China is something we all need to get used to.
Another perspective (more closely resembling mine) from Moxie on the DailyDave mailing list (for my money the best resource about network (in)security:
“The spin on this has been great. From what I can tell:
1) Google’s China office has been thoroughly compromised by insiders,
such that they really have no choice but to shut it down. Their PR
department is absolutely and terrifyingly amazing, though. So instead
of just closing it in defeat, they take “a stance for freedom,” forcing
the government to shut them down instead. Fucking brilliant!”
Click through the link for the whole email.
Shorter version: Google (and several other large technology firms) have been repeatedly compromised through not particularly sophisticated targeted attacks. Google, being the smart folks they are, found a way to spin this in a sympathetic light which draws attention from the actual data collected by Google and possibly compromised.
Anyone who thinks s ‘cloud’ is a safe place for the crown jewels is advised to think again.
China needs google in China so they can learn as much as possible and then use this knowledge to their economic and military advantage.
Wall Street has been holding a gun to companies heads and selling intellectual property to Asia for pennies on the dollar. Google is no different in this respect.
I predict that there will be some sort of compromise, Google will stay in China, China will continue to learn whatever it can about Google’s technology and eventually, with our help, China will have learned enough to compete with product offerings that will cost more American jobs.
And as a middle man, Wall Street will make a fortune. History is on my side.
Google filters stuff that Americans aren’t allowed to see.
WHAT??? Yes.
I converted to using Dogpile which searches Google and a number of other search engines. Hardly have to google Google anymore.
China passed a bigger Stimulus Package than we did either their Rulers are Enlightened or their leaders are more clued into their peoples dissent than we are?
Ask yourself this is China’s policy any worse than our current Net Policies, legal or otherwise but still in effect or the loss of Net Neutrality?
Google caught them now Google owes its shareholders and explanation why the loss of China happened just how bad was the loss of Freedom was it any worse than what America has done?
If the Commies have a good PR dept this could be a huge coup the WTO can’t deny China the same rights to spy on its people America has however hacking is not cool.
Either Google is forced to give in and lets every government spy with Google’s help on its own people something the WTO should accept you can’t spy with Google for free after all Google does need to get paid.
Or Google just lost service in every dictatorship Left and Right think Columbia and Venezuela. Would the WTO make a case based on such arguments public I think not expect a face shaving gesture for Google and a waiting period China Google will resume.
Unless we are thinking of making a stand on Taiwan.
Google is in the business of non privacy. The China headlines take some heat off their privacy battles here at home. Because for Google, an “open” information society makes it possible for them to make their $30 billion a year..which is most definitely not “free” regardless of what the new media gurus preach.
so why not leave?
If shaming superpowers works for human rights, why doesn’t it work on us?
The US is a shameless violator of human rights and far too many of it’s citizens (and bloggers) are in complete denial (or ignorance) about it. Why is that?
And go where?