Wednesday, March 17, 2010

China partners to Google: Decide now

Hong Kong, China -- Google's business partners in China are asking the company to clarify whether it will stay or go.

The often emotional letter from firms selling advertising on Google.cn, posted on a government Web site, suggests that Google's business partners are in the dark about the company's plans.

The letter -- signed by 27 Chinese companies and addressed to John Liu, Google's top executive in China -- said they are "worried and anxious" since Google's January 13 announcement it may leave China. The partners said they are having trouble retaining staff and are worried about legal fallout from clients if Google shutters its China operations.

"We see business sliding, but there is nothing we can do ... We are waiting now in incomparable pain and disquiet," the letter said. "Now is the time to act ... we can't wait any more."

Should Google leave China now?

The resellers also asked how their businesses will be financially compensated if the Internet giant pulls the plug on the world's largest online market over issues related to censorship and a December hacker attack on Google and dozens of other Western companies that emanated from China.

Google threatened to leave China and briefly quit censoring its Web site there. Chinese law requires Internet operators to censor information for sexual or political content.

The letter comes to light as Google's two-month standoff with the Chinese government appears to be coming to a head. Recent reports in the Financial Times and the Wall Street Journal cite anonymous sources who say it's now likely Google will fold its China operations.

Google has remained tight-lipped on the status of talks with Beijing and its long-term plans for China.

"So far we don't have any updates to share with the media. As we mentioned before, the standpoint and the attitude of Google has not changed," Marsha Wang, Google's China spokesperson, told CNN Wednesday. "So we don't have anything new to share regarding the negotiation. Right now, there is no timetable about the negotiation. If there is anything new, we will tell the media then."

Google, like other Internet operators in China, are expected to renew their license to operate this month. Google's Wang wouldn't comment whether the company plans to renew its license. "Usually the re-registration will be carried out in March as required by the Chinese government," she said. "Right now we don't have any update."

"They've been very cagey about what they've been doing since that initial statement, so everybody's been guessing," said Jeremy Goldkorn, founder of Chinese media site Danwei.org. "I don't think they will be able to persuade the Chinese government to let them run an uncensored search engine -- it's just not going happen."

The departure of Google, which has about a third of the Chinese search market, probably won't impact the average Chinese Internet user, Goldkorn said. "There are many local alternatives and for a lot of Chinese people they are very used to using Baidu.com," said Goldkorn, referring to China's most popular search engine.

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