Google and China Square Off

U.S., Google and China square off over Internet

SAN FRANCISCO/BEIJING (Reuters) – Google’s threat to quit China over censorship and hacking intensified Sino-U.S. frictions on Wednesday as Washington said it had serious concerns and demanded an explanation from Beijing.

China has not made any significant comment since Google, the world’s top search engine, said it will not abide by censorship and may shut its Chinese-language website because of attacks from China on human rights activists using its Gmail service and on dozens of companies, including Adobe Systems.

Chinese authorities were “seeking more information on Google’s statement,” the Xinhua news agency reported in English, citing an unnamed official from China’s State Council Information Office, the government arm of the country’s propaganda system.

Friction over the Internet, part of a long-running dispute over human rights, appears likely to stoke tensions between the United States and China. Analysts warn of clashes on issues ranging from climate change to China’s crackdown on dissidents and Iran’s nuclear ambitions.

President Barack Obama’s administration, which in 2009 strived to embrace China as a partner in tackling global issues, has angered China by approving arms sales to Taiwan and by slapping tariffs on Chinese tires and steel products.

Obama is also expected to meet with the Dalai Lama of Tibet, a world religious figure whom China reviles and accuses of leading a Tibetan separatist drive. Obama avoided meeting the exiled Tibetan leader last year to pave the way for a summit with Chinese President Hu Jintao in November.

Writing before the Google decision, The Eurasia Group consultancy, pointing mainly to economic disputes, identified U.S.-China relations as the top global risk of 2010.

“In the future, we’ll look back at that summit as the peak of the relationship, and we’ll see significant deterioration in U.S.-Chinese relations in the coming year,” the group wrote.

With China the largest lender to the United States, holding $800 billion in Treasury bills, Internet tensions will make steering this vast, fast-evolving relationship all the more tricky, especially with the U.S. Congress in an election year.

“China has been taking a harder line,” said Shi Yinhong, an expert on relations with the United States at Renmin University in Beijing. “The next few months are going to see some turbulence in China-U.S. relations. We may see some tactical concessions from China, but the general trend isn’t toward compromise.”

China has said it does not sponsor hacking.

Pressing China for an explanation, U.S. Secretary of State Hillary Clinton said: “The ability to operate with confidence in cyberspace is critical in a modern society and economy.

“We have been briefed by Google on these allegations, which raise very serious concerns.”

Chinese industry analysts said the issue had snowballed beyond Google and its problems.

“If this becomes heavily politicized, and there are signs that it is, and people in the Chinese government say, ‘This is good. It serves you right, and we won’t bow our heads to the United States,’ then there’ll be no way out,” said Xie Wen, a former executive in China for Yahoo and other big Internet companies, who is now an industry commentator.

“The impact on China’s image will gradually also affect the enthusiasm of investors,” he added. “It’s not the pure economic losses — a billion or so — it’s the deteriorating environment.”


China’s policy of filtering and restricting access to Web sites has been a frequent source of tension with the United States and tech companies, such as Google and Yahoo Inc.

Google’s announcement suggested the recent intrusions were more than isolated hacker attacks.

“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,” Google’s chief legal officer David Drummond said in a statement posted on the company’s blog.

Some 20 other companies also were attacked by unknown assailants based in China, said Google.

Google’s potential withdrawal from China shocked investors and analysts, who fear the web search leader’s strategic plans may be threatened.

Although the analysts noted in reports issued on Wednesday that Google draws between $300 and $600 million in revenue from China — less than 5 percent of its sales — they voiced concerns about Google’s future prospects and potential for advertising sales in that huge market.

“For investors this is clearly a negative,” Broadpoint AmTech analyst Benjamin Schachter said in a research note. “The obvious concern is that China’s growth has been solid and its market potential is enormous.”

Early on Wednesday, such concerns pushed investors toward Chinese search engine Baidu Inc, which leads Google in China’s search market with more than 60 percent share. Shares of Baidu jumped 16 percent to $447.40 in premarket, while Google shares slipped 2 percent to $578.00.

A Google spokesperson said the company was investigating the attack and would not say whether the company believed Chinese authorities were involved.

Obama, during a visit to China in November, told an online town hall that he was “a big supporter of non-censorship.”


After the Google announcement, searches on its search engine turned up images and sites previously blocked, including pictures from the 1989 crackdown on pro-democracy protests in Beijing. Other searches remained restricted, carrying messages warning users that some content was blocked.

China’s ruling Communist Party, wary of the Internet becoming an uncontrolled forum for the country’s 360 million Internet users, is unlikely to allow Google to avoid repercussions.

“Hostile Western forces have never abandoned their strategic schemes to Westernize and divide us, and they are stepping up ideological and cultural infiltration,” the Party’s chief propaganda official, Li Changchun, wrote last month.

If, launched in 2006, shuts down, Beijing could seek to restrict access to Google’s main search engine, which can also do searches in Chinese, although China’s “firewall” of Internet filters blocks many users from opening up the results.

“The general tendency over the past year has been to accuse foreigners of having a Cold War mentality and being anti-China,” said Rebecca MacKinnon, an expert on the Chinese Internet at the Open Society Institute.

“How exactly they are going to react to this, I cannot anticipate, but it’s likely that it will not be pretty.”

Posted in Finance, Off Topic.


  1. Pingback: play casino

  2. help me write essay [url=]medical school essay help[/url] help on essay <a href="">essay help 123</a> essay helpers

  3. thesis paper writing [url=]help with thesis writing[/url] online thesis writing <a href="">good thesis statement</a> phd thesis paper

  4. english essay writers [url=]persuasive essay writer[/url] hire essay writer <a href="">п»їessay writer</a> professional essay writers for hire

  5. buy cheap purchase uk viagra [url=]buy viagra cheap[/url] generic viagra <a href="">buy viagra soft tabs</a> viagra tablets for sale

  6. essay writer online [url=]best writing paper[/url] best essay writing <a href="">easy essay writer</a> custom essay company

  7. dissertation writing fellowships [url=]dissertation research[/url] dissertation writing service <a href="">dissertation writing coach</a> dissertation help service

  8. essays about service [url=]original essay writing service[/url] service essay writing <a href="">best essay writing service</a> cheap essay writing service us

  9. tadalafil 20 mg [url=]order cialis online[/url] cialis coupon <a href="">cialis pill</a> cialis without prescription

  10. help paper [url=]custom paper writing[/url] buy a literature review paper <a href="">customized paper</a> buy papers for college online

  11. payday loans online no credit check [url=]3 month payday loans[/url] payday loans oregon <a href="">payday loans near me online</a> payday loans online

  12. fast auto and payday loans [url=]legitimate payday loans online no credit check[/url] payday loans online bad credit <a href="">payday advance loans</a> payday loans online same day

  13. Pingback: online casino gambling

  14. best medical school essay editing service [url=]review of essay writing services[/url] write essay service <a href="">editing essay services</a> essay writing service law school

  15. cialis soft tabs [url=]tadalafil reviews[/url] cialis soft tabs <a href="">tadalafil dosage</a> buy tadalafil online

  16. purchase viagra [url=]viagra stories[/url] order viagra online <a href="">buy female viagra</a> where to buy viagra online

  17. cialis vs viagra <a href="">can you take cialis in the morning and viagra at night</a> viagra or cialis

  18. buying viagra online <a href="">viagra alternatives</a> purchase viagra online

  19. viagra connect usa <a href="">how long does viagra last</a> cheap viagra

  20. what can i take to enhance cialis <a href="">buy cialis</a> how to get maximum effect from cialis

  21. cialis no prescription <a href="">do you need a prescription for cialis</a> tadalafil reviews

  22. mba essay help [url=]essay helper online[/url] help write essay <a href="">help me to write an essay</a> essay writing help for high school students

  23. cheap essay writing service us [url=]online essay editing service[/url] college application essay services <a href="">essaywriting service</a> best essay editing service

  24. order custom essays online [url=]cheap custom essays[/url] customized essay writing <a href="">cheap custom essay</a> custom essay station

  25. buy my essay [url=]buy essays online for college[/url] buy essays online for college <a href="">buy custom essay</a> buy essays online safe

  26. cialis for bph <a href="">goodrx cialis</a> generic cialis india

  27. purchase viagra <a href="">viagra samples</a> generic viagra 100mg

  28. how does viagra work <a href="">viagra pill</a> does viagra work

  29. do you need a prescription for cialis <a href="">tadalafil best price</a> non prescription cialis

  30. canadian pharmacy viagra <a href="">viagra for men</a> buying viagra online

  31. viagra dosage <a href=""></a> viagra online

  32. cialis 10mg <a href=""></a> cialis online pharmacy

  33. online pharmacy ezzz viagra <a href=""></a> canadian pharmacy ezzz viagra

  34. cialis online <a href=""></a> п»їcialis

  35. when to take viagra <a href=""></a> viagra online

  36. cialis cost <a href=""></a> how to get maximum effect from cialis

  37. viagra or cialis <a href=""></a> cialis online

  38. buy cialis online <a href=""></a> cialis reviews

  39. viagra pills <a href=""></a> women viagra

  40. tadalafil dosage <a href=""></a> tadalafil generic

  41. viagra prices <a href=""></a> viagra online canadian pharmacy

  42. cialis for sale <a href=""></a> cialis generic

  43. viagra pills <a href=""></a> viagra alternative

  44. cialis prescription <a href=""></a> online cialis

  45. cialis tadalafil <a href=""></a> cheap cialis

  46. cialis 20 mg <a href=""></a> tadalafil 20 mg

  47. viagra vs cialis <a href=""></a> canadian pharmacy ezzz viagra

  48. online cialis <a href=""></a> cialis for sale

  49. cialis pill <a href=""></a> buy cialis online

  50. viagra for sale <a href=""></a> viagra dosage

  51. liquid tadalafil <a href=""></a> tadalafil tablets

  52. over the counter viagra <a href=""></a> how much is viagra

  53. buy cialis without prescription <a href=""></a> cialis no prescription

  54. cheap tadalafil <a href=""></a> liquid tadalafil

  55. tadalafil tablets <a href=""></a> order cialis online

  56. viagra connect <a href=""></a> what is viagra

  57. cialis pills <a href=""></a> buy cialis

  58. cialis side effects <a href=""></a> cialis cost

  59. free viagra sample <a href=""></a> viagra purchase

  60. cheap viagra <a href=""></a> generic viagra online

  61. п»їcialis <a href=""></a> liquid tadalafil

  62. how much viagra should i take the first time? <a href=""></a> buy viagra online

  63. non prescription cialis <a href=""></a> buy cheap cialis

  64. buy tadalafil online <a href=""></a> buy cheap cialis

  65. cheap cialis <a href=""></a> cialis canada

  66. how much does viagra cost <a href=""></a> online viagra

  67. cialis cost <a href=""></a> is there a generic cialis available?

  68. canadian pharmacy cialis <a href=""></a> what can i take to enhance cialis

  69. viagra price <a href=""></a> cheap viagra canada

  70. viagra price <a href=""></a> over the counter viagra substitute walgreens

  71. cialis tadalafil <a href=""></a> cialis no prescription

  72. viagra coupon <a href=""></a> can women take viagra

  73. non prescription cialis <a href=""></a> tadalafil liquid

  74. Does your child:Turn up the volume of the TV excessively high?
    <a href="">viagraviagria</a> canada viagra

  75. Who notices it defines whether it is a sign or a symptom Many
    say it is not necessarily the nature of the
    sign or symptom, but rather who observers it that defines it.
    <a href=""> viagraviagria</a> generic viagra cost

  76. Morphine, the prototype of these drugs, can be taken by mouth orally or by injection.
    canadian viagra (<a href=""></a>) how
    much is viagra

  77. Nasal and sinus passages become swollen, congested, and inflamed
    in an attempt to flush out offending inhaled particles that trigger allergies.
    <a href=""></a> viagra price

  78. The study was simple, Irwig and his team interviewed 71 men aged 21 to 46 who reported the
    onset of sexual side effects after beginning treatment
    with either Proscar or Propecia. Since none of the participants had a history of sexual dysfunction prior to taking the drug, it was concluded that
    it was the drug that was causing their sexual issues.
    canada viagra (<a href=""></a>) levitra vs viagra

Leave a Reply

Your email address will not be published. Required fields are marked *

Human Verification: In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.