Google.cn: The end of an uneasy relationship with China

July 2005...

Google China is founded and headed by former Microsoft executive Lee Kai-Fu (pictured). Months later, it is able to launch Google.cn as a censored search engine. At the time, Google says that its move to censor its searches and appease regulators is justified because it is the only way it can remain operational in the country and, regardless of its censors, it still serves as a long-term education tool for Chinese netizens. Yet, by January 2007, the company claims that its censorship policy is damaging to its reputation.

September 2009...

Lee Kai-Fu departs the company. He is credited with making “dramatic advancements” in Google’s search capabilities and making a name for the company in China, where Baidu has long been the dominant search engine with a 61.6 per cent share. Among his achievements are a legalised music search and the expansion of Google Mobile Search through a partnership with China Mobile.

January 2010...

Google declares that it is “no longer willing to continue censoring” its results on Google.cn. The announcement follows news that hackers broke into Chinese human rights activists’ Gmail accounts. Google implies that the incident was linked to the Chinese Government. In response, the Government says that any company looking to operate in the mainland must obey its laws, not giving Google the fuel it sought to claim victory in the standoff. Rumours immediately circulate of a hiring and work freeze at Google, outside its mobile-development unit.

March 2010...

Two months after the company first threatened to depart China, Google declares it will stop censoring its search results in China, thus spelling the end for Google.cn. Although the .cn domain will cease to exist, it emerges that China searches will be carried out through Google.com.hk in Hong Kong, further antagonising the mainland Government, and Google still maintains plans for mobile expansion. However, executives cited in reports are dubious about Google’s future in China following the Government fall-out.

Fast forward...

Although the loss of Google.cn would be symbolic, analysts say Google Inc. would sustain minimal fiscal losses. Inside sources suggest the company’s poor financial performance had prompted it to consider an exit strategy. This became viable when the breach was uncovered. Also, while Google.cn has made inroads in search share - claiming roughly 35 per cent - Google.com could still serve as an advertising and search platform. And Google plans to maintain a presence in mobile through its Android phone, despite Baidu’s own progression in mobile.

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This article was originally published in the 8 April 2010 issue of Media.