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Communications of the ACM

ACM Opinion

Google Loss Won't Hamper Business Gains in China

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When Google made its threat to pull out of China on January 12, it titled its online announcement "A new approach to China," indicating its high expectations for rallying more foreign companies in China to its "noble" cause. 

That approach has proved wrong.

With its action to shift its search service from the Chinese mainland to Hong Kong yesterday, the world's top search engine has made a huge strategic misstep in the promising Chinese market.

More importantly, most of the foreign enterprises in China are not even swayed by the "Google problem"–a key term used by Microsoft CEO Steve Ballmer to characterize the dispute as an individual case.

The loss suffered by Google will by no means hamstring the potential business gains of other foreign companies in the country. Those in the Internet business in particularly will be encouraged to take a slice out of the market share abandoned by Google.

From Global Times
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