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Google is losing China because the Chinese government will do whatever it takes to make sure domestic companies win in the long run. They will throttle bandwid

by aneth 16y ago

Google is losing China because the Chinese government will do whatever it takes to make sure domestic companies win in the long run. They will throttle bandwidth, block IPs, subsidize, threaten, deny permits, and use any other levers of power - subtly but effectively - until Chinese companies dominate the domestic market. Baidu does a great job, but these reasons that Google "was not close enough" are a smokescreen for what's really going on there.

spdy 16y ago
Why is google losing china? They own a piece of Baidu and they still operate a business in mainland china. To me it looks like they are in a wait and see mode right now. You cant win in china because you are big in the world and the same goes the other way. I dont see myself using Baidu as my main search engine.
glh 16y ago
Another technique China uses is to allow foreign corporations access, provided that they produce the goods and services sold to Chinese citizens domestically in China. Take, for example, American car companies which do brisk business in China. The brands are popular and American, but the cars themselves are all Made in China. China wins, American corporations win, only the American people lose. China is engaging in naked mercantilism, artificially depressing their currency to maintain a trade surplus, enacting tariffs and other protectionist measures to limit imports and foreign access to domestic markets, and trying to secure a monopoly on natural resources with the aim of waging economic warfare against other nations, as they demonstrated recently with their decision to halt exports of rare-earth minerals to Japan over a minor territorial dispute. This is far worse even than what we've come to expect from our supposed allies in Europe who routinely slap 15+% VATs on our exports and selectively enforce regulations to target mergers and acquisitions by American companies. I hope the policy makers who kept telling us that China would liberalize and become a responsible power as it developed are satisfied with the situation they helped to create. I doubt they'll be the ones to have pay the price for it.

by aneth 16y ago

spdy 16y ago

Why is google losing china? They own a piece of Baidu and they still operate a business in mainland china. To me it looks like they are in a wait and see mode right now. You cant win in china because you are big in the world and the same goes the other way. I dont see myself using Baidu as my main search engine.

glh 16y ago

Another technique China uses is to allow foreign corporations access, provided that they produce the goods and services sold to Chinese citizens domestically in China. Take, for example, American car companies which do brisk business in China. The brands are popular and American, but the cars themselves are all Made in China. China wins, American corporations win, only the American people lose. China is engaging in naked mercantilism, artificially depressing their currency to maintain a trade surplus, enacting tariffs and other protectionist measures to limit imports and foreign access to domestic markets, and trying to secure a monopoly on natural resources with the aim of waging economic warfare against other nations, as they demonstrated recently with their decision to halt exports of rare-earth minerals to Japan over a minor territorial dispute. This is far worse even than what we've come to expect from our supposed allies in Europe who routinely slap 15+% VATs on our exports and selectively enforce regulations to target mergers and acquisitions by American companies. I hope the policy makers who kept telling us that China would liberalize and become a responsible power as it developed are satisfied with the situation they helped to create. I doubt they'll be the ones to have pay the price for it.