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China may have finally driven away a U.S. search company

After a turbulent time trying to cash in on an internet population of more than 300 million users, Google may leave behind China.

Google first entered China in 2000, but elected not to open an office in the country until 2005.   The company's hesitation made it lose out to other American-based companies also looking to cash in on, but it quickly rebounded and became the leading U.S. search company in the country.

According to the company, Gmail and other Google services have undergone countless attacks by unknown sources  -- it seems the email accounts of Chinese human rights activists were accessed and other nefarious actions were performed on not only Google, but other tech companies.  

“In mid-December, we detected a highly sophisticated and targeted attack on our corporate infrastructure originating from China that resulted in the theft of intellectual property from Google,” wrote Google Chief Legal Advisor David Drummond on the company's official blog. “However, it soon became clear that what at first appeared to be solely a security incident--albeit a significant one--was something quite different.”

"We have been briefed by Google on these allegations, which raise very serious concerns and questions," U.S. Secretary of State Hillary Clinton noted to reporters.  "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," but the U.S. government still doesn't have an exact stance on the issue.

Similar to other western companies, Google adhered to Chinese government policies, and has agreed to terms of service that would not be accepted in North America and Europe.  Google, Yahoo and Microsoft all hope to have a large presence in China, but have struggled to compete with Chinese Baidu  search engine.

If Google leaves China, Microsoft and Yahoo will desperately attempt to stop those users from switching to Baidu.  Microsoft disclosed at the end of 2009 that China is the most important search market it must focus on, as Google is the No. 2 search engine behind Baidu's 63.9% control.



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By sorry dog on 1/13/2010 10:37:17 AM , Rating: 2
So I guess it's in the ancient chinese culture rule book that those in power can facilitate cyber-attacks against those that they don't agree with.

I believe China's meteoric rise to power is built on the hard work of millions being allowed to have ambitions, in spite of their government trying to hold them back... albiet to a lesser degree in the last 20 years.


By Hieyeck on 1/13/2010 6:20:52 PM , Rating: 1
Because improvement from Top-Down has worked out SO well for Russia (see Gorbachev).

The stupid thing is to try and change everything overnight, it leads to violence and destruction. The one thing Chinese culture has learned in 4000 years of continuous existence (which NO other culture in the world can boast of) is patience. Deng Xiaoping's greatest accomplishment wasn't throwing open the doors of China, but merely unlocking the door. China is trying to reign in it's potential because if it grows too fast (as it might possibly be doing), the rest of the world will fear it and try to stamp it out. Not just that, but internally, if growth goes unchecked, it will turn into a cluttered, disorganized sprawl, the likes of which you see in LA. Tokyo is half the size of LA with 4 times the population and I can say that its urban planning and layout is HEAPS more efficient and economical.

You must first learn to walk, before you can run.


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