The dust has settled a bit in China since Google threatened to throw in the towel that would be heard ‘round the world. Here are the cliff notes for their reasons:

1. Google.cn, as well as a number of other world companies, have recently been attacked by Chinese cyber hackers
2. The goal of some attacks was to hack into the Gmail accounts of known Chinese human rights activists.
3. Google is no longer willing to continue censoring results and participating in BeiJing’s continued attempts to “further limit free speech on the web"

A quick look around the forums in China uncovers a cry of support for Google to stand up against the “Celestial Kingdom.” Many Chinese I’ve talked to are fearful of regressing back to a time when BaiDu was the only Search Engine.

A computer science student in HangZhou told me, “If I want to find music, movies, or pictures, I use BaiDu. If I want reliable or technical information, I use Google.” His sentiments are shared by many in China—especially since BaiDu was recently exposed for taking payments from fake medical companies for higher placement in the "organic” search results.

Google has stated that over the next few weeks they will talk the Chinese government about how they “could operate an unfiltered search engine within the law, if at all.” While we wait for the other shoe to drop, we figured we’ll predict the most likely outcome.

As noble as Google’s cry for “free speech” may be, they have already demonstrated that they are more than willing to get in bed with the Great Dragon. They have gone to great lengths to appease BeiJing by filtering everything from artistic nude photos to results concerning “sensitive subjects.” So, let’s dispense with the happy talk: Google, like all other corporations, is in the business of making money.

The first REAL reason for Google’s public statement is related to click fraud. Click fraud is when a team or automated program (usually off-shore) repeatedly clicks on an online advertisement with the sole purpose of racking up illegal revenue.  While Google will not release the specific amount of money they are loosing to click fraud, it’s no secret that the forefront of the battle against “click fraud” is being fought in the Chinese market. 

The second REAL reason Google is making threats is the political and legal quagmire a foreign-owned company must face when doing business in China.  The Chinese government does not exactly roll out the welcome mat to foreign-owned companies unless they are willing to make some serious concessions and break off a big piece of the pie. As one Chinese net citizen aptly wrote:, “no matter who you are, the moment you come to the Celestial Kingdom, you will be castrated.”

According to CCTV, Google may be talking with a Chinese-owned company that could serve as its Chinese face. Google would provide the results, and the Chinese company would take it from there. We have no idea if there is truth in this rumor. But, it would certainly alleviate a lot of Google’s Chinese headaches.

So, is Google.cn gona cut and run? If we were the betting type, we’d put our money on No. They have invested far too much into the Chinese market and own close to 30% of the market share. This public statement is just Google’s way of whining about their “castration.” It is nothing more than a preface for their next corporate move in China.

In either case, stay or go, InfiniteNine is prepared to adapt to the new landscape. We are dedicated to assuring our Clients implement the best online marketing strategies in China.