I’ve written a few times about last week’s news that Google could exit China in response to its censorship and hacking. Human rights activists everywhere are hoping that other foreign firms will take similar stands. Could Google lead an exodus from the Asian superpower? I have my doubts, but a report from Bloomberg paints an even more pessimistic picture of that potential outcome.
Bloomberg’s article says that Google actually attempted to get other big firms on board to threaten to leave China. And these weren’t just any firms — they were the other firms affected by the hacking that drove Google’s decision. They said no. Bloomberg reported on Friday:
Google announced this week that it was one of at least 20 companies targeted in a “highly sophisticated” computer attack and wanted others to talk about the incident, the person said. The companies refused, and Google made the announcement by itself, the person said.
This is very discouraging news for Google’s effort. If any other companies are likely to exit China’s market, it would be those hurt by its hackers. Yet, even they aren’t on board. Given that fact, I’m not sure what firms would be.
It’s important to remember that not all firms are Google. In fact, very few firms are. Google will likely be just fine without a presence in China. Sure, it will lose potential revenue, but it’s a profit machine. With or without China, Google will be a-okay, particularly in the short-run.
But think about other firms. They aren’t in as comfortable a position as Google. They sure would like a billion potential consumers to sell their products to. They’d also like China’s cheap labor for their manufacturing. Leaving Asia’s most populous, fast-growing nation isn’t nearly as compelling a proposition for them. Even if they don’t like China’s politics, they need to be practical. Their refusal to join one of the most significant firms in the world, Google, in its decision to leave China after this vicious hacker attack shows just how scary the prospect of losing China’s business is for other companies.
Unfortunately, the result will probably be that Google’s decision will have very little impact on the Chinese government’s policies. Even if some other multinationals did follow Google, the Chinese government might have chosen to ignore them. But with other firms disregarding Google’s announcement, Chinese officials will likely view Google as the exception and not the rule anyway. So long as other firms comply with China’s rules, while only grumbling quietly, its government certainly won’t change its ways.
