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January 14, 2010

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Mixed bag of reaction to Google quit threat

GOOGLE Inc's threat to quit China because of perceived censorship and recent online attacks targeting the company's services has been greeted with an element of skepticism by a high-ranking official from the Information Office of the nation's Cabinet.

"It is still hard to say whether Google will quit China or not ... nobody knows," the official, who declined to be identified, was quoted by Xinhua news agency as saying.

Many Chinese Netizens are worried about the loss of services if the Internet giant ends operations in China.

It would be a big mistake if the world's most-used search engine provider exited China, industry officials said.

"We should review the feasibility of our business operations in China," Google Chief Legal Officer David Drummond said in a statement on Tuesday.

"We recognize that this may well mean having to shut down Google.cn, and potentially our offices in China."

Google will meet Chinese government officials over the next few weeks to see whether it can operate an unfiltered search engine within the laws of China.

Otherwise, Google will shut Google.cn, a Chinese-language Website launched in 2006, and other offices in China, according to the statement.

The official with China's State Council Information Office said yesterday that Chinese Internet authorities were seeking more information on Google's statement.

The company's services - including Google.cn, iGoogle and Gmail - still worked yesterday.

'Sad news'

"This is definitely a big surprise and very sad news for users in China because now we potentially have fewer choices," said Edward Yu, chief executive of Beijing-based research company Analysys Internet.

Online discussions have turned heated, especially among students, white-collar workers and IT employees.

"As an English major student, I'm used to searching and downloading hundreds of documents via Google to finish my papers," said Bao Mengqian, a senior of Shanghai University. "If it suddenly disappears, I will be left behind."

Dozens of Google fans gathered in front of the company's China headquarters in Beijing yesterday morning, bearing flowers and scrolls expressing sentiments including "Goodbye, Google.cn," Luo Yihang, who was there, told Shanghai Daily.

In recent years, Google has developed products specifically for Chinese consumers. These services include translations, a Chinese pinyin input system, local train information search services and legal music downloads.

However, some residents and Netizens believe Google's threat may be a ruse.

"I doubt that Google will really abandon the huge China market and accompanying profits," said Wu Ji, a sales manager who works for an IT company.

"It is probably just putting pressure on the government using its huge user base as leverage," Wu said.

By the end of September, Chinese search engine Baidu's market share was 63.89 percent, compared with Google's 31.30 percent, according to Analysys.

Baidu declined to comment on the issue yesterday.

Alibaba.com Inc, which acquired Yahoo's China business, believes a lack of competitive players in the game would make it "less interesting," according to Wang Tong, public and customer communications director with the company.

In a short statement to Xinhua yesterday, Google said: "We are proud of our achievements in China. Currently we are reviewing the decision and hope for a resolution."

Two Google sources based in Beijing and Shanghai told Shanghai Daily yesterday that local staff were unaware of the head office action until it was announced.

The company will hold a meeting for all Chinese staff today, according to the Google source based in Shanghai.

The majority of Google China's 700 jobs won't be influenced if the company shuts Google.cn.

"Less than 100 people work for Google.cn," the Beijing-based Google source told Shanghai Daily.

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