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Google To Suspend Mobile Phone Launch In China

An anonymous reader tips news that Google has decided to delay the launch of two mobile phones in China after the recent censorship conflict with the Chinese government. The phones were developed with Samsung and Motorola, and both of them run Android. A related article in BusinessWeek wonders whether Google's new stance on censorship will halt the progress Android is making in China, the world's largest mobile market. "The country was well on its way to helping Google exploit Android. Chinese handset makers such as Huawei and ZTE have been some of the earliest supporters of the upstart operating system. China Mobile already sells its own version of an Android-based phone system called OPhone. Motorola is making a big push into the Chinese market with smartphones based on the Android OS. And China's Lenovo has developed numerous Android-based products, including the LePhone. Any undue pressure from the establishment would mean that most of these companies would have to abandon Android in favor of other mobile operating environments."

40 of 172 comments (clear)

  1. Backing themselves into corner by jimbolauski · · Score: 4, Insightful

    Google is positioning itself so that their only two options will be to tuck their tail between their legs and do China's bidding or pull out and lose all the invested capital. China will not back down they will never let themselves appear weak.

    --
    Knowledge = Power
    P= W/t
    t=Money
    Money = Work/Knowledge so the less you know the more you make
    1. Re:Backing themselves into corner by DynaSoar · · Score: 5, Insightful

      Google is positioning itself so that their only two options will be to tuck their tail between their legs and do China's bidding or pull out and lose all the invested capital. China will not back down they will never let themselves appear weak.

      Google can afford to lose the investment. Until someone does make the sacrifice, everyone else is going to cave to China. When someone stands up to them, others will follow.

      But not selling in China is no big deal. They're make and sell what we won't sell them, even if they have to build it from pirated plans. What will make the difference is when someone refuses to buy from China. China will respond by shuttering, which will only propagate the intended cut-off: If you won't buy from us, we won't sell to you. Who's to suffer? Walmart shoppers?

      The marketplace, taken as a whole, has much more power than any government. If it decides to act as a whole, either they'll win, or everyone will lose with China losing far more.

      If Google doesn't do this, it'll be a long time before anyone does, if ever. So fuck China. If Google does this I'm prepared to back them by buying stock.

      --
      "I may be synthetic, but I'm not stupid." -- Bishop 341-B
  2. "Don't be evil" is put to the test by goldaryn · · Score: 4, Insightful

    Google knew well that the decision to pull their search engine out of China would affect their other business interests there. They aren't dumb - they knew it well. Here they gave something up (some access the biggest potential market in the world) in order to stick to their guns. Their mantra is becoming more than just words.

    1. Re:"Don't be evil" is put to the test by Tharsis · · Score: 3, Insightful

      That really depends on your point of view. It's actually a pretty scary idea that google thinks it has enough power to change the governing policy of one of the biggest countries in the world. Sure, to our (western) point of view it makes a lot of sense to try to give citizens the freedom to express their opinion, but they ARE trying to infringe upon the sovereignty of a country. A country cannot work if they have to change their laws according to the wishes of a company.
      I cannot vote for Google, so they do not rule.

    2. Re:"Don't be evil" is put to the test by krou · · Score: 4, Insightful

      Well, before we get on the love-Google bandwagon, it's equally possible that the threat of trade secrets/code being stolen, which could be passed on to a Chinese competitor, combined with Google's less than stellar market share in China, is a cost that far outweighs any possible gains by hanging on hoping the Chinese government throws them a few scraps. So, in order to turn a bad situation around, they state they're doing it because they object to the bad bad Chinese government, which helps in the PR department, and also applies pressure on Google's competitors like Bing/Yahoo etc. to do something similar.

      China may have the potential to be the biggest market in the world, but they're inherently protectionist, and actively protect local industry first. Nothing is going to change that until China is the most powerful economy on earth, at which point they may adopt the "free market" because they'll be in a position of dominance to ensure they always win. The British did it this way, and so did the Americans, I don't see why China should behave any different.

      --
      'If Christ had tweeted the sermon on the mount, it might have lasted until nightfall.' - John Perry Barlow
    3. Re:"Don't be evil" is put to the test by bhtooefr · · Score: 2, Insightful

      A country cannot work if they have to change their laws according to the wishes of a company.

      Which is why the US is in the decline it's in, but that's another story.

    4. Re:"Don't be evil" is put to the test by jrumney · · Score: 5, Insightful

      It's actually a pretty scary idea that google thinks it has enough power to change the governing policy of one of the biggest countries in the world

      In the words of an individual who did have enough power to change the governing policy of one of the biggest countries in the world in the past; Our lives begin to end the day we become silent about things that matter.

    5. Re:"Don't be evil" is put to the test by orlanz · · Score: 3, Interesting

      It's actually a pretty scary idea that google thinks it has enough power to change the governing policy of one of the biggest countries in the world.

      Come on, is it really that scary? I mean we got the farm, auto, finance, telco, and security industries doing this every day over here and we are more scared of the mythical terrorist. Its about time one of our industries (search) starts poking at someone else left with a spine... even if they end up losing a finger.

      I think we are all making this seem FAR bigger than it actually is. A company has reassessed the risk profile of an environment and found it to be not suitable to justify continuing operations. Said company is looking at mitigating some of the risk. If it doesn't work out, the company will revisit the _idea_ of discontinuing operations. Losing China will not be that big a deal to Google as the environment was against it in the first place.

    6. Re:"Don't be evil" is put to the test by Sheik+Yerbouti · · Score: 4, Insightful

      This makes no sense they had like what 30% of search in China and 600MM a year in revenue. Yahoo Microsoft et al. have much much less than that and they see no need to walk away from China. They are the second largest search provider in China you don't walk away from that lightly and you don't run away when you are GAINING market share. So that's just tripe I can't see why people think this would be insightful at all.

    7. Re:"Don't be evil" is put to the test by tlhIngan · · Score: 2, Insightful

      This makes no sense they had like what 30% of search in China and 600MM a year in revenue. Yahoo Microsoft et al. have much much less than that and they see no need to walk away from China. They are the second largest search provider in China you don't walk away from that lightly and you don't run away when you are GAINING market share. So that's just tripe I can't see why people think this would be insightful at all.

      Remember they want to pull out because they're being hacked, and private data has been accessed. Not necessarily Google's data, but user's data. Stuff like emails in GMail, documents in Google Docs, and who knows what other data they may have gotten.

      Google feels that continuing operations in China would cost more (from the efforts in trying to secure the data) than simply pulling out and forgoing the revenue. Or, that if they continue, the continued hacking and theft of user's data would turn people off Google worldwide, hurting them even more. After all, would you continue to use Google if you knew your emails and documents are continually broken into and read by third parties? Now imaging you're using hosted apps by Google as a company - that Chinese competitor of yours might have an itchy finger for whatever emails and documents you have...

      So by pulling out, they may forego a huge market, but if it lets them keep users in other markets, it's still a win.

      It's less about search, and more about advertising. If people don't trust Google, they won't use Google. And this includes all those emails and documents on their servers.

    8. Re:"Don't be evil" is put to the test by KlomDark · · Score: 2, Insightful

      Makes no sense? Are you serious?

      Yes, Matilda, there really ARE things more important than money... Societal survival, making sure your kids aren't enslaved, many things are more important than market share, and the inhumane corporations of the world are just starting to realize that.

      Try not acting like a mindless virus (Breed & Eat, Breed & Eat, ..., until your environment is destroyed), instead act like a self-aware lifeform that knows the secret to longevity is to not consume all, but to maintain a balance.

      Making money from bad people/governments leads to bad money in your pocket, sucking your lifeforce while you dive to the bottom of the abyss.

      Wake up! Before it's too late. Do not worship money for money's sake, if you must worship it, then worship it for it's power to enable good things to happen when handled by the wise.

      Did you exchange a walk-on part in the war, for a lead role in a cage? [Floyd]

    9. Re:"Don't be evil" is put to the test by phantomfive · · Score: 5, Insightful

      Or you could get past the 'faceless corporation' meme and investigate what the actual people in charge of the company were thinking. According to this article, Eric Schmidt (the CEO) was strongly in favor of doing business in China. He's primarily a businessman, he sees the monetary potential, and he argued they could do good there.

      Sergey Brin, who was born in the former USSR, has more personal feelings about censorship and human rights issues. He was never entirely in favor of doing business in China, but went along with it. When this happened, he wanted to stop doing business in China.

      Estimates are that Google makes $300 million to $600 million in China, so while it's not going to break the bank, they are taking a hit from this. If they wanted to do the financially intelligent thing, they would keep operations in China (if they really have concerns about intellectual property, they can keep all that in the US and segregate their employees in China from the US).

      --
      Qxe4
  3. Yoink!....No Google for you China by xgr3gx · · Score: 2, Insightful

    Google should just say sorry China - you get no google anymore.
    Although it's hard to say no to market where 100 Million ad impressions is a slow day.

    --
    Shameless plug alert: Game server control panel
    1. Re:Yoink!....No Google for you China by dingen · · Score: 2, Informative

      Although it's hard to say no to market where 100 Million ad impressions is a slow day.

      That's exactly the problem right there. It boils down to this: Google needs China more than China needs Google. So China can do whatever they want and Google will always have to either accept it, or quit.

      --
      Pretty good is actually pretty bad.
    2. Re:Yoink!....No Google for you China by v1 · · Score: 5, Interesting

      Google needs China more than China needs Google.

      But in reality, China doesn't need Google, and Google doesn't need China.

      I for one am thankful to see anyone not tuck tail and say Thank You Sir May I Have Another when China kicks them in the balls.

      Google's rep and their Do No Evil took a major hit recently with concessions to China, and Google had basically said this is IT this is as far as we will go, and China just continued to push it, and Google has finally had enough and is playing hardball. Good for them, have at it.

      Someone needed to teach China that just because they're the biggest single market in the world doesn't mean they dictate the laws that the rest of the world has to follow. In that respect China is no better than a monopolistic company, that's abusing its monopoly position.

      --
      I work for the Department of Redundancy Department.
    3. Re:Yoink!....No Google for you China by jimicus · · Score: 4, Insightful

      Someone needed to teach China that just because they're the biggest single market in the world doesn't mean they dictate the laws that the rest of the world has to follow. In that respect China is no better than a monopolistic company, that's abusing its monopoly position.

      And when they've done with that, would they mind flying over to the US and teaching them the same thing?

    4. Re:Yoink!....No Google for you China by MrMarket · · Score: 2, Interesting

      Step 1: Start a JV with a non-controlling stake in China Step 2: Hand over all of your intellectual property Step 3: ???? Step 4: Profit China is a red herring, because outsiders do not win. The companies that realize this sooner and move on to other markets like India and Brazil/South America will be better off in the long run.

    5. Re:Yoink!....No Google for you China by Symbha · · Score: 2, Interesting

      Small correction:
      China is not the biggest single market in the world.
      The US is still the biggest market in the world.

      The Chinese market is the biggest emerging market, but isn't close to the US market, per capita, or otherwise.

      http://www.wolframalpha.com/input/?i=compare+gdp+of+us+vs+china

      http://www.wolframalpha.com/input/?i=compare+per+capita+gdp+of+us+vs+per+capita+gdp+of+china

  4. Re:in Japan... by FuckingNickName · · Score: 2, Interesting

    Pointing out the strength of the Chinese in the world economy and making comparisons to other far Eastern nations in recent history is not off topic. This isn't a question of withdrawing from some random authoritarian state which needs Google investment and expertise, this is about getting into a spat with the largest manufacturing centre in the world, without which we wouldn't all have the cheap PCs and mobile devices that give Google such a market.

    Consider where China could be in the next 20 or 30 years if it starts to adopt Western discipline in intellectual property. It has already got this far without abandoning many of its restrictive principles. Moreover, great advancement has been achieved in many centralised states... never mind, this would be implying that the Google capitalistic hero of the day is not inevitably going to win for life, so I'm fighting a losing battle.

  5. They have to be careful ... by Chrisq · · Score: 2, Interesting

    They have to be careful. After all the android is open source and China certainly has the capability of making their own mobile phones. If they don't sell in China, China could just make its own Android, and use the economies of scale to export it to the West too. This threat is a bit like a Scotsman saying he won't sell his whiskey in Nashville

  6. Re:in Japan... by Anonymous Coward · · Score: 2, Insightful

    Missed a step: US invasion and installation of democratic government.

    The PRC will certainly be a major player in the years to come, but unless they can work out their human rights abuses and their stance on things like Tibet they're only setting themselves up to pop like the USSR (or worse).

    You can't expect to educate AND oppress the plebs at the same time.

  7. Re:Dumb question by Chrisq · · Score: 3, Informative

    Most in Taiwan ... not China's favourite place

  8. Gibson was right by Dr.Syshalt · · Score: 4, Insightful

    Now we can see the first open conflict between private corporation and a government.

    Just wait for the first armed one.

    1. Re:Gibson was right by Yvanhoe · · Score: 2, Insightful

      You may have missed a whole series of antitrust cases in EU and US...

      --
      The Wise adapts himself to the world. The Fool adapts the world to himself. Therefore, all progress depends on the Fool.
    2. Re:Gibson was right by ThrowAwaySociety · · Score: 3, Interesting

      You may have missed a whole series of antitrust cases in EU and US...

      That's the point. In every other case of government-corporate head butting, the corporation may have complained loudly (sometimes in court) but never before has one just said, "No, we won't play by your rules."

    3. Re:Gibson was right by Rich0 · · Score: 2, Interesting

      A big part of that is not having a local presence - which you can get away with web-based apps (unless you take local advertising dollars - unless said dollars are paid directly to you overseas).

      Suppose I provided a purely web-based service (news, search, something that involves nothing more than packets over the internet). I take payment in advance by some method which does not rely on infrastructure outside of my own country. Maybe I deposit checks, or maybe I use US credit cards (for a US company), or I take cash mailed in envelopes - whatever. My business is completely supported by my local government (it is legal, no politicians want to take extra-legal steps to shut me down, etc). Let's also assume that as the CEO/owner I never leave my own country.

      If I operate this way, then there is nothing anybody can do about my business operating in their country, except try to block access or persecute their own citizens who are my customers. If my search page returns nazi images on wikipedia or whatever, the Germans can't do a thing about it. They can of course try me in absentia and find me guilty, but they have no power to punish me.

      Now, they can do things like order local banks not to honor checks made out to me, or local credit card companies to deny payments to me. If they have the technical means they can try to firewall me. However, if one of their citizens opens a bank account in a foreign bank and uses it to pay me, there is not much they can do about it (except punish my customers).

      In China's case, they have the great firewall, and punishing their own people is something that doesn't really give them concerns. So, in this case they can do something about it - but only inside their own borders. They can't touch Google itself at all, unless they convince the US government to play ball.

  9. Re:That'll teach those Commies a lesson by metlin · · Score: 5, Insightful

    You underestimate the importance of MNCs and FDI if you think that this does not make a difference.

    Countries clamor for investment from top firms, and go a long way to accommodating them. China may be big, but they are just as dependent on such investments. If it were cut and dry, they would have given Google the finger a long, long time ago.

    If enough corporations started doing that, then other developing countries start looking ripe and interesting. It does not take much for a country to go from plum, juicy investment targets to stark and dangerous entities that no one would touch with a ten-foot pole.

    Just under ten years ago, the Asian economies were all the rage -- and before that, Latin American countries. China could just as easily be an also-ran if they pushed too hard. After all, even the USSR fell, for all its (supposed) might, and that's in recent memory.

  10. Phones are life in China by adosch · · Score: 2, Informative

    It's definitely a good thing that Google held off launch in China; Asian companies are the central hub for embedded technologies, although I think the U.S. gets the brunt of garbage technological imports, but the Chinese population long ago adopted and integrated cell phone usage into their daily lives bigtime. They've been power-using phones long before anyone in the U.S. started promoting it. PDA's where always a big thing, but until the iPhone and Blackberry craze of 2008-2009, we didn't see anything like that virally spread, phone wise. TFA is right; China probably has something total to their population and market that rival very well with the Android and why move away from that? It's not to say China's techies or phone enthusiasts would shy away from trying something new, but like I said, they've been integrating phone usage into their lives for a lot longer than we in the U.S. have nation-wide.

  11. More should follow their example. by L4t3r4lu5 · · Score: 2, Interesting

    The world worked fine before China got industrialised and made all of our stuff using cheap labour and materials by exploiting the oppressed workforce.

    Let's go back to home-grown industry and leave China to destroy themselves. Our respective economies could do with the business.

    --
    Finally had enough. Come see us over at https://soylentnews.org/
    1. Re:More should follow their example. by L4t3r4lu5 · · Score: 2, Insightful

      Indeed. This idea works only if everyone is idealistic as me.

      This is why I'm posting on /. and not aiming for a Management position; Too many morals.

      --
      Finally had enough. Come see us over at https://soylentnews.org/
    2. Re:More should follow their example. by gad_zuki! · · Score: 3, Informative

      I call fallacy of idealizing the past here. China has been a manufacturing powerhouse since the 1970s. So 40 years now. So you are saying you want to bring back American factories and conditions from the 1960s? That time in manufacturing was best known for lawsuits, strikes, poor quality control, union corruption, and overall fucktardness.

      The reality is our economy (or any for that matter) doesnt work if we paid factory workers 55k a year with benefits. As far as "exploiting" the workforce: Are you willing to pay 2 to 3x the price of your goods for the sake of a factory worker's wellbeing? Well, what do you expect to pay them? Their wages are competitive for the demand of their skills. The guy in the US making 10 dollars an hour on the lathe isnt too different than the guy making 2 dollars an hour in China, when you compare purchasing power of that money in those countries.

      Look, Im not some super free-market guy, but using loaded language like "exploited" and pretending that manufacturing in the past was some kind of ideal job is just being disingenuous. The invisible hand of the market controls a lot of this and the largest part of that hand is you and me demanding cheap prices for good like cars, computers, phones, etc. The boogeyman is you and me, not necessarily some big government entity holding everyone down.

  12. Not really it doesn't. by oGMo · · Score: 5, Insightful

    It's actually a pretty scary idea that google thinks it has enough power to change the governing policy of one of the biggest countries in the world.

    This has not been shown to be the case. I'm sorry, but you can't have it both ways. Does Google put their foot down, or don't they? Do they give into the local laws and help oppress, or don't they? I don't see Google invading China with corporate armies, or hacking Chinese government systems, or subverting Chinese government employees here.

    A country cannot work if they have to change their laws according to the wishes of a company.

    No, but a company is made up of people, and in a democracy, those people have a say in how the country is run, along with every other citizen. Perhaps you don't live in a country with a democratic form of government, or you don't value the freedom of each voice being heard. However, in the United States, we do value these things.

    But in the end it still comes down to one question: should Google support China's repressive government, or not? If you condemn them either way, you are a hypocrite. And you'll have to make a really, really good case for "should support repression" as being "not evil".

    --

    Don't think of it as a flame---it's more like an argument that does 3d6 fire damage

    1. Re:Not really it doesn't. by Tharsis · · Score: 2, Interesting

      It's actually a pretty scary idea that google thinks it has enough power to change the governing policy of one of the biggest countries in the world.

      This has not been shown to be the case. I'm sorry, but you can't have it both ways. Does Google put their foot down, or don't they? Do they give into the local laws and help oppress, or don't they? I don't see Google invading China with corporate armies, or hacking Chinese government systems, or subverting Chinese government employees here.

      Well, I'm sorry, but if a company wants to operate in a country, it should abide by its laws, otherwise it's a criminal organization. It's not up to that company to change the government, it's up to the people that live in the country. There are more ways than those you mention for a company to force its wishes on a government (MS has used some).
      I'm not saying I agree with what China is doing. But I also don't think it a good idea to force my ideas of freedom on them, if there's anything that causes chaos in a country it's sudden changes like that. I'd say China has been doing a pretty good job of slowly creating a more free country.

      A country cannot work if they have to change their laws according to the wishes of a company.

      No, but a company is made up of people, and in a democracy, those people have a say in how the country is run, along with every other citizen. Perhaps you don't live in a country with a democratic form of government, or you don't value the freedom of each voice being heard. However, in the United States, we do value these things.

      I do value these things (and I do live in a democratic country) but I do not have the wisdom to say that it is better than all other forms of government, and neither do you unless you've lived in them. Basically what I'm saying is that it should be the people that change a country, not an outside company. Where's the democracy in an outside company forcing a change.

      But in the end it still comes down to one question: should Google support China's repressive government, or not? If you condemn them either way, you are a hypocrite. And you'll have to make a really, really good case for "should support repression" as being "not evil".

      Stop thinking so binary. Just because one is "evil" doesn't mean the other is "good". There are a lot more options than the ones you mention.

    2. Re:Not really it doesn't. by shutdown+-p+now · · Score: 4, Insightful

      Well, I'm sorry, but if a company wants to operate in a country, it should abide by its laws, otherwise it's a criminal organization.

      And Google is doing just that - since they decided that they cannot in good conscience (or business sense, depending on who you ask) abide by those laws, they have pulled out.

      It's not up to that company to change the government, it's up to the people that live in the country.

      Absolutely. But people who live in the country may want said company to operate in their country, and if that company refuses to operate under their laws, change the laws accordingly. I don't see anything wrong with that. By no means this is "company in charge of a country".

  13. Re:related topic: China ends Avatar showing by Primitive+Pete · · Score: 2, Informative

    Yeah, "not enough local movies" seems like a predictable outcome of suppressing free speech.

  14. Re:in Japan... by javilon · · Score: 5, Insightful

    We're not exactly out of Microsoft's clammy clutches yet.

    Not indeed. And I think a most important part of this story is Microsoft shutting up and taking it from the Chinese goverment, happily.

    That means that now when you use hotmail, or office live or msn, or any of the Microsoft web properties, there is a chance that not only the NSA and the US courts can access your data, but also unelected and corrupt Chinese officials.

    --


    When his defense asked, "Which computer has Jon Johansen trespassed upon?" the answer was: "His own."
  15. This comes on top of Avatar in China by Anonymous Coward · · Score: 2, Interesting

    Apparently, China is now extremely limiting the Avatar run in China. Depending on whose version you believe, it is either due to China saying that it competes too much with their local films, or it is too close to home with the protests against the gov. for taking land for commercial buildings. Basically, we have a trade war starting in which SOME companies are having enough of the Chinese gov running rough shod on them, while the Chinese gov. continues to ignore their legal agreements to get into the WTO, and then to stay in there as well.

    Time to drop their MFN with America and hopefully with the west.

  16. Re:Google is Bluffing by BiggoronSword · · Score: 2, Insightful

    Oh, my! I'm sorry. My terrible pun offended you. Please forgive me. Thank you for pointing out this very insignificant mistake that really has nothing to do with my post. I have learned my lesson, and will never do it again.

    --
    interactive hologram, or it didn't happen.
  17. Re:in Japan... by NotBornYesterday · · Score: 4, Insightful

    The Chinese have one big advantage over the US: their government doesn't need to lie to anyone.

    What? They lie all the time, and do so in grandiose fashion. Just because they openly censor and spy on their own people does not mean that they are an honest regime. In fact, that itself is the problem ... by censoring information, they seek to rewrite history in terms favorable to their propaganda, which is by definition lying.

    --
    I prefer rogues to imbeciles because they sometimes take a rest.
  18. Re:Google is Bluffing by KlomDark · · Score: 2

    Yes, yes, yes, you fucking Asia-snob, Samurai are not Chinese, but it still works... STFU.

    It still works cause most of our uneducated masses couldn't tell the difference between the two.

    China? Yah, that's the capital of Japan.