Can Google survive in China again?

In spite of its great optimism and blessings from the Chinese authorities who just hope more innovative technology from Google, the prospects for Google in China are seen as grim because the domestic tech giants who don't wish its re-entry into the Chinese market have already released customised and user-friendly versions of the Android system in the last five years, writes The Hans India’s East Asia Correspondent

In today’s China, success is not a given. Western companies in China that have been profitable for decades are fighting as the Chinese business environment changes dynamically. China is now not ready to open doors easily for foreign investors as before. In the past, one was allowed to reap any kind of profits with confidence as China was hungry for basic technology to develop its society. Now things changed dramatically under the leadership of Xi Jinping.

The Chinese President doesn't allow any external investors to gain profits from Chinese market, without gaining satisfactory innovative technology. Many American corporates tried to act as undercover agents but failed. Google search and other apps have been blocked in mainland China except Google Analytics – the largest web analytics service in the world. Google Analytics provides this service at no cost to website operators around the world, including those based in China.

With the aim of capturing the world’s largest market, Google had consistently struggled to adapt itself to the Communist policies since it established its Chinese search business in 2006. The tech giant had committed many illegal acts incompatible with Chinese laws. No freedom for dumping western culture including pornography and banned topics. No freedom for spying. No freedom for unofficial investigations using its high-tech search engine. The embarrassed search engine business finally failed to adapt to the local censorship system. Google left China in 2010 with unexpected humiliation from all walks of Chinese life. In 2010, Google's marketshare was far below that of Baidu in the mainland.

Repenting its blunder mistakes in China during the period from 2006 to 2010, Google is reported to be warily returning to the Chinese mainland in 2016 as it witnessed slowing income growths coupled with strict supervision in Europe since NSA's mass surveillance scandal in 2013. It’s a well-known fact that capital moves from areas of relatively low profit rates into the areas of high profit rates. Google's main goal is to reap profits from the large Chinese market. It apparently has had talks with Chinese authorities about opening a new Android app store which should obey the strict Chinese laws – no more spying.

The presence of Google Analytics in China is of strategic value for Google’s potential reentry giving Google vital knowledge about an individual’s interests. As a preparation to reenter Chinese market Google has already registered 18 domain names suffixed with cn and it analysed the Chinese market last year. The company is in now full cooperation with Chinese company named Huawei in producing the intelligent mobile phone Nexus 6P.

In spite of its great optimism and blessings from the Chinese authorities who just hope more innovative technology from Google, the prospects for Google in China are seen as grim because the domestic tech giants who don't wish its re-entry into the Chinese market have already released customised and user-friendly versions of the Android system in the last five years Domestic Internet firms such as Baidu, Alibaba and Tencent who did great technological innovations and breakthroughs recently, have lasting impact on Chinese users, so how can Google's comeback affect the Chinese market is a big question. China's search businesses have already dominated the market. Google’s delayed re-entry into China might suffer another setback or humiliation if it does any spying activities or illegal programmes. It has a tough task ahead in China.

By Dr Ravindrababu Konduri