Beyond Google: How can foreign companies operate successfully in China’s Internet space?
When Google announced that they may exit the China market, it sent shock waves across both traditional media and new media. I’d like to highlight a few of the thoughtful posts that helped shape my perspective on this issue:
Clearing Up Confusion on Google and China
Why it’s Good that Google.cn Leaves + SEM (2)
Google Leaving China Will Not Be A Revolution, Televised Or Not
What Google is Trying to Do In China - Gambling For Free Speech and Losing
The specific case of Google raises an important broader question: where can foreign Internet companies succeed in China? With 384 million Chinese netizens and that number is set to increase, companies see the Internet as a space in which the possibility exists to make some serious cash. That said, instances such as the Google case demonstrate that even the most powerful of global Internet companies may be unable to make the Chinese government change its censorship policies. If you can’t change the law, then how can you still work within the existing framework to win?
The Chinese government’s number one priority is to maintain social order and stability. The Internet is perceived as a threat to social stability, which is why the government has implemented restrictive measures such as the Great Firewall of China.
Where is the most regulation?
The Internet companies most regulated are those that are perceived as possessing the potential to affect social stability. Internet search and Social Networks (SNS) are two such areas – thus negatively impacting foreign sites like Google, Facebook and Twitter. If you are a company that provides access to “sensitive” material or provides a communication platform for netizens to unite on “sensitive” topics, then you will continue to face pressure and restrictions from the Chinese government.
The underlying trend appears to be that in the event that the government is unable to repress Chinese netizens’ needs for a particular service, they will restrict the foreign original and support a more easily regulated domestic alternative. This can be seen both with the Google – Baidu and Facebook - RenRenWang dynamics as well as with the recent emergence of Sina’s Twitter-like micro-blogging service.
Where is there room for growth?
Companies who wish to succeed in China’s Internet space would best stick to areas that focus on job creation and economic gain that do not overlap with broader social & societal challenges. The government actively promotes the online gaming industry and is a great proponent of e-commerce companies like Alibaba Group that connect people to do business and grow the Chinese economy, rather than connect them in a way to go against the government.
However areas such as Internet search, Social Networks and other online communication platforms will continue to be heavily monitored, regulated and even thwarted by the Chinese government due to the potential impacts such tools have on social interaction and unification.
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How far will google’s world domination take them? to go head on with china is not the way to go!