CFR:
Top of the Agenda: Google to Stop Censoring in China
Google announced it would stop censoring (WashPost) search results on its Chinese site after unsuccessful negotiations with Chinese authorities. China made clear that self-censorship was a non-negotiable legal requirement of operating in the country. Google will send its mainland China users to its search engine in Hong Kong, which has its own economic and political systems. China could still shut down Google's remaining business operations in the country, block all its sites, or take action against its seven hundred employees there. China began blocking results for sensitive searches on Google's Hong-Kong-based site Tuesday.
Responding (Xinhua) to Google's announcement, a Chinese official said Google "violated its written promise" and is "totally wrong" in stopping censoring and blaming China for alleged hacker attacks.
The Chinese foreign ministry said the case would not affect (NYT) China-U.S. relations unless "politicized" by others.
Analysis:
In TIME, Bill Powell says Google's decision to effectively exit the market with the most Internet users doesn't make business sense, according to analysts.
The Economist says revenues from the Internet may become even harder for foreign firms to capture as China steps up controls.
On CFR's Asia Unbound blog, Evan Feigenbaum says the American business community is increasingly conflicted about operating in China due to issues like intellectual property theft and China's regulatory regime.
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