Google will abandon its business in China as the financial daily China Business News
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Google will abandon its business in China as the financial daily China Business News

Date: March 19, 2010 Source: Reuters
Category: Business
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The multinational Google announced on Monday plans to abandon its business in China after two months of rifirrafes with censorship regime in Beijing, said today the financial newspaper China Business News.

According to the report, Google abandon its business in China ( Google.cn ) on 10 April, and sources cited as an employee and an anonymous sales agent of the U.S. company in the People's Republic, the largest Internet market with 384 millions of users.

Contacted by Efe, the spokespersons of the Californian company in China were not available for comment from the Chinese newspaper.

The Ministry of Industry and Information Technology told Efe that has no news on Google's announcement, to be informed in writing of his renunciation of the Department of Commerce.

The U.S. multinational January 12 accused Beijing of being involved in cyber attacks suffered political dissidents, businessmen and journalists in their email accounts hosted on their servers and threatened to leave the Asian country if the regime does not give up its Internet censorship .

The Chinese regime has denied involvement in the attack, calls for topics related content censor "sensitive" as the killing of students at Tiananmen, repression in Tibet and Xinjiang and other violations of human rights, a limitation which Google agreed in 2005, as did Yahoo or Microsoft.

Censorship concerns in addition to these political content, pornography, which proliferates in most local websites.

Analysts already ahead in January than in the struggle between the Asian country and the company president Eric Schmidt , the second had everything to lose.

"Google has been in a difficult situation in China for some time, betraying his philosophy and although it has generated benefits have not been as many as potentially could be expected," summed up in January Efe Mark Natkin, director of consulting firm Marbridge Consulting, based in Beijing.

Natkin then recommended Google to abandon its business in Mandarin and keep the form in English, as can happen.

In the last week the U.S. press said the possibility that Google abandon China was 99.9%, citing company sources, after Schmidt said that the outcome of negotiations with Beijing would be known soon.

The possible closure of Google's business in China would occur before your license expires in April contained a document that allows foreign firms to operate Internet in China had to be reviewed by the Ministry of Industry and Technology Information.

The minister of this portfolio, Li Yizhong, said this month that Google "is free to leave or stay," but that if he left, "the Chinese Internet industry is not affected."

The Global Times newspaper reported today that Google's main rival in China, the local search engine Baidu increased its market share in 2009 to 76%, while that of the U.S. company was reduced from 20.7% to 18.9, a level never reached higher than America Online, eBay or Yahoo in China.

At the same time, the Chinese government has withdrawn from its website a letter allegedly signed by 27 partners in China Google's advertising claiming compensation for possible abandonment, spread widely by state media, after 22 of these firms say that they had nothing to do with the letter.

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