On March 23, 2010 Google redirected traffic from its Beijing based search engine to its service in HK.  The move effectively means that Google no longer needs to filter its search results as required by Chinese law.  Google offices have closed in Mainland China.  Five years ago Google, China had a savvy CEO from Taiwan who knew how to tread the line between US shareholders and Chinese censors.  He left to set up his own venture.

Currently, Google has sacrificed its reputation with patriotic Chinese consumers on the altar of western values; with the minority of free speech sympathisers, it has however generated debate on censorship. Overall I would say that their move is a commercial home goal; Chinese believe Chinese not Sergey Brin or Hillary Clinton. Foreign companies may find it hard to recruit the best talent in China if they offend political sensibilities. Baidu (Chinese search) will mop up the malcontents.

Takeaway

• Foreigners should adapt to differences in China. A modern nation state this century may not be a model of democratic freedom. Freedom of speech is evolving in China with the growth of the online community (337 million internet users) but at a pace dictated by Government. Twitter and Facebook are banned as horizontal social media could unite geographically diverse pockets of discontent. Search engines are on the fringe of acceptability.
• Foreign CEO’s like Sergey Brin should stay at the Chinese dinner table to remain part of the conversation. If you want to get critical in China you first need to get close to the source of power. Licking your wounds in Hong Kong (China-lite) won’t help. Befriending the movers and shakers in Beijing might have more impact.
• People discuss the salient issues in China in the most informal settings so that no-one loses face. If you want to talk about sensitive issues go for a hike on the great wall with your Government counter-part; don’t fire cheap shots in the boardroom that end up in the press.
• Google should establish their commercial success in China, before turning up the volume on political topics. China is at a stage in its development where people care more about getting rich than being righteous. If you happen to be rich and right-on then you will make compassion cool; Hu Jintao visited Bill Gates before Bush.
• Foreign CEO’s have to learn how to do business discretely within Chinese cultural parameters; they must cut the umbilical cord with parochial opinions back home. Sergey Brin is seen as a puppet CEO taking the punches on behalf of human rights advocate, Hillary Clinton.
• China is the new target market for many foreign companies. Hillary/Sergey may be heroes at home, but China is just left searching for an alternative engine. Politics 1. Business 0.