Google considering ending operations in China

Despite talks being underway, sources close to the development told the Financial Times, that Google will most likely pull out of China, and that the company has made a detail plan regarding how to wind up operations in the country.

Mark Natkin, managing director of Marbridge Consulting, was quoted by Reuters as saying, “Our forecast has always remained firm that once Google announced it would not accept censorship, then it was nearly impossible to imagine a scenario either where Google didn't act on that or the government accepted their position.”

Officials adamant to censor sites
It seems that the Chinese authorities are not willing to compromise on censorship.

Li Yizhong, minister for industry and information technology, has warned Google that "if it takes steps that violate Chinese laws, that would be unfriendly, that would be irresponsible, and they would have to bear the consequences."

Further, the officials have warned Google’s partners that they should follow censorship laws, even if the Internet search giant does not.

The warning is the latest indication that Google may fail to reach a consensus with the authorities in China and may finally quit working there.

According to analyst, a move by Google to end operations in China will frustrate users, and may adversely affect it partners if they do not switch to other search engines.

Advertisers advised to move to Baidu
With speculations rife that Google may soon shut down its operations in China, the advertisers, who are currently with Google, are being warned that they should and back up plans and should preferably switch to Baidu, before the Internet search giant pulls out.

“When we talk to clients, we have been pushing them in the direction of Baidu more,” said Vincent Kobler, managing director at EmporioAsia Leo Burnett in Shanghai.

“The Chinese government has taken a firm stance, and Google, they have their own principles, and are going to shut down,” added Kobler.

Even Google’s clients are now more pessimistic about company operating in China, following Chinese authorities’ statement that not complying with censorship laws would mean that it is “irresponsible.”

According to web analytics company StatCounter, Google's market share in China is 43 percent.

Though the company lags behind Baidu, which has 56 percent market share, analysts believe that a move by Google to end operations in China will frustrate users, and may adversely affect it partners if they do not switch to other search engines.