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Q3 - Case Study 1 - Google in China

If foreign search engine companies declined to invest in China due to censorship concerns: - The Chinese government would have complete control over what information citizens see online, benefiting local search engines without strong foreign competition. - China would lose access to massive foreign search services that organize global information, depriving citizens of news and information. This violates human rights and restricts China's free market. - Foreign search engine companies and advertisers would struggle, as they would lose access to China's large population of potential customers.

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188 views2 pages

Q3 - Case Study 1 - Google in China

If foreign search engine companies declined to invest in China due to censorship concerns: - The Chinese government would have complete control over what information citizens see online, benefiting local search engines without strong foreign competition. - China would lose access to massive foreign search services that organize global information, depriving citizens of news and information. This violates human rights and restricts China's free market. - Foreign search engine companies and advertisers would struggle, as they would lose access to China's large population of potential customers.

Uploaded by

Kara
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Case Study 1: Google in China

Question3. If all foreign search engine companies declined to invest directly in China due to
concerns over censorship, what do you think the results would be? Who would benefit most
from this action? Who would lose the most?

China, one of the largest countries in the world, creates ample opportunity for foreign
search engine companies to expand their market shares. However, the policies and laws under
the Chinese government made it difficult for foreign investors to invest directly within China due
to concerns over censorship that the government implemented. In 2000, Google began a
Chinese-language service operated in the U.S. making Google’s mantra, “Don’t be evil”
implemented, free from the Chinese Government laws and regulation in censorship, however,
was frequently unavailable or slow.

With the regulations under the Chinese government, the restrictions will result in the
foreign search engines violating their mission to serve the public truthfully – like Google.
Google came up with the term to constantly conduct business with integrity. One component of
this was the determination not to let the interests of outside company’s influence where they
ranked. Companies that provide internet services must promise not to disseminate anything that
"destroys the state's honor or interests" or "disturbs the public order or destroys public stability"
(Baron, 2006).

If Google ends up leaving China, it would be making a statement that American


companies oppose censorship and do not support information dictatorship. However, if foreign
search engines decide to abandon China, the Chinese government will prevail. They would have
complete control over what their residents look for and see on the internet. This setup benefits
local search engine companies because they would not have strong foreign competition. And
also, the Chinese government can easily control the information released by the local search
engines in comparison to the international search engines.

Despite who would benefit the most, if all foreign search engine companies were to stop
making direct investments in the Chinese market, China would lose access to a massive service
that organizes and accepts world information. The Chinese people would be deprived of a great
deal of information, news, and amusement. This situation is harmful to the Chinese people and
economy since human rights have been violated, and free market and competitive restrictions
would stifle China's economic development. Simultaneously, foreign search engine companies
around the world would struggle in a variety of ways. Companies that advertise using search
engines would lose a lot of money because search engines supply a wide range of potential
customers.

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