• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • China and Google: Old (Business) News

    985632-Google-Internet

    There may be valuable political conclusions to be drawn from the current tiff between Google and the Chinese government, but there certainly isn’t anything new on the economics or business side. Perhaps the main reason the PRC wants foreign technology and know-how is to drive foreign (and some domestic) companies out of business.

    Google’s threat to stop its China service entirely has prompted broad discussion of the struggle of many multinational firms in the PRC. The discussion is well summarized by James McGregor, “There’s a sense China is saying, ‘We have your technology and your capital – and now we have control of the market.’”

    The remarkable thing here is not China’s behavior but the fact that anyone didn’t know this years ago. The Chinese government has long been explicit about increasing intervention to promote state enterprises and using foreign companies in that quest. As Heritage noted in 2008:

    . . a model of national champions—large corporate groups consciously created with the idea that size is neces­sary to compete globally. An unspoken corollary is often that neither domestic nor foreign competition with these champions can be tolerated. China has been enamored of the champions concept for at least a decade, but the restructuring process was acceler­ated in 2002 . . .

    In fact, Chinese policy has been clear since at least 2003. That we have companies and analysts discovering it in 2010 is news about them, but not news about China.

    Posted in International [slideshow_deploy]

    2 Responses to China and Google: Old (Business) News

    1. Pingback: Looting Continues in Haiti as Residents Leave Capital in Search of Food – Voice of America « Blog Next Door

    2. Pingback: By phone, ads, or in person, a frenzy to get out the vote – Boston Globe « Blog Next Door

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×