Consider also: Google is certainly not failing in China, and the notion is an exceptionally stupid explanation that plays directly into the simpering / entirely ignorant posture that multinationals seem to adopt when they consider the China market. The move may not be as costly as a lot of people seem to be suggesting. For the foreseeable future, China isn’t going to account for a large segment of the online ad market. In a decade that will change, though in ten years Google might develop a pseudo-intelligent-do-everything algorithm. The tables won’t turn but neither China nor IT broadly will develop in a vacuum. Significant changes could still occur.

This is a paradigm shift, regardless of what information we haven’t heard yet. A decade ago, the inevitable future plutocracy was supposed to oppress my rights and take advantage of people; yet here is a multinational doing what no nation state has been willing to do: take a decidedly scorched earth stance against the CCP. From Ultimi Barbarorum:

I was surprised that several Shanghai-based European VCs and businessmen I follow on Twitter were among the cynics, berating Google for not conforming to Chinese/Asian business practices based on saving face, consensus and relationship-building, instead reverting to an “American” ultimatum. But these views come from individuals who have already made their peace with China’s political system, and whose business models and reputation do not depend on the unfettered flow of information. Perhaps some of them are unwittingly using the occasion to signal their own reliability as partners in China: “Look at us — we’d never consider doing what Google just did.” Google may have burned its financial bridges, but they are burning their moral bridges, making them the Stupid Cartesians of this sorry episode, Baruch.

Other good readings here (Fallows):

… What happens after Google is so roundly cheered for taking so clear a stand? China will still be there; many of its people will hunger for outside information and most will aspire to modernization… The next step is to find some way to reduce the number of losses — including, yes, for the Chinese government, since (believe me) absolutely no good will come to anyone anywhere from the government’s feeling shamed, humiliated, or newly insecure. It is emotionally satisfying to see the Chinese government thrown off balance after its recent repressive moves. That won’t make things better for most people in China.

and here (Jay Ogilvy, via China Digital Times).