Late last week it was reported that Google is reworking the terms of its operating agreement in China. It has been well known that the Chinese Government have allowed Google to run only on a limited basis. Chinese people have therefore enjoyed some of the same benefits as us in the West but it has definitely only been a restricted access to the Google search engine compared with most of the developed world. Recently however it would seem Google has decided it will only provided the search engine if it is wholly free of restrictions.
Over the last 5 years the Chinese internet economy has increased exponentially. Whilst it is hard for the West to precisely measure the amount of Internet business currently in existence in China, it’s realistic to assume that it has experienced the same levels of growth as the rest of the developed world, China will no doubt have many thousand of Internet organisations accompanied by the same service infrastructure of Online Marketing and search engine placement services, all conducting business within their massive internal market.
The internal market for internet transactions in China is a multi billion dollar concern and many Chinese Organisations will be using the Google resource to connect their products to a market in a Country where geographical constraints would mean all but the largest Companies could advertise properly without the web.
If the Chinese Government refuse to permit an uncensored Google to work, many thousands of companies, like a Website Optimization Company, for example, would be out of business very quickly. In the struggle to get visibility on the web, how would Online Marketing and Search Engine Placement organisations operate without the base line of Google? Not that the demise of such companies would bring down the Chinese Government of even make an impact on the GDP in themselves but, if there is no Market infrastructure to advertise on then market activity will likely end. The demise of such businesses as a Website Optimization Company would be the first sign of the death of the Internet in China.
The issue is that a lot of Chinese companies are now dependant on the Internet to do their internal business and through Google they have been given a means (albeit a restricted one) to do business with the rest of the World. Should that access be taken from them the Government may find they face huge opposition from not only the politically active but also from the business arena. Should a deal with Google not be struck that permits, at the very least, the same access as the Chinese business community previously enjoyed, the opposition could find itself with big backing.
So if Google holds out and will only give the uncensored search engine the Chinese Government are stuck between a virtual rock and real hard place. Let uncensored access and the associated loss of control of the hearts and minds of the Chinese people, or risk internal unrest. Can Google achieve the relaxation of the regime, where, in the past all other efforts have always failed?
